The UK jobs report released on Tuesday, June 15th, has provided a boost to the GBP/USD currency pair. The report showed that the UK unemployment rate fell to 4.7% in the three months to April, down from 4.8% in the previous quarter. This is the lowest level since the pandemic began and is a positive sign for the UK economy.
The report also showed that the number of people in employment increased by 113,000 in the same period, which is a strong indication of economic recovery. The Bank of England (BOE) expressed relief at the positive figures, stating that they were in line with their expectations.
The BOE has been closely monitoring the UK jobs market as part of its decision-making process on interest rates. The central bank has previously stated that it will not consider raising interest rates until there is clear evidence of a sustained recovery in the jobs market.
The positive jobs report has also provided a boost to the GBP/USD currency pair. The pound rose against the US dollar following the release of the report, with GBP/USD reaching a high of 1.4115. This is the highest level for the pair since May 10th.
The rise in the pound can be attributed to several factors. Firstly, the positive jobs report has increased confidence in the UK economy and its recovery from the pandemic. This has led to increased demand for the pound as investors seek to take advantage of the positive economic outlook.
Secondly, the BOE’s expression of relief at the positive jobs report has also boosted confidence in the pound. The central bank’s positive assessment of the UK economy has reassured investors that the UK is on track for a strong recovery.
Finally, the rise in the pound can also be attributed to a weaker US dollar. The US dollar has been under pressure in recent weeks due to concerns over inflation and uncertainty surrounding the Federal Reserve’s monetary policy.
Overall, the UK jobs report has provided a boost to the GBP/USD currency pair and has increased confidence in the UK economy. The positive figures have been welcomed by the BOE and have reassured investors that the UK is on track for a strong recovery. As the UK continues to reopen and the economy recovers, it is likely that we will see further positive developments in the jobs market and the wider economy, which could provide further support for the pound.
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- Source: https://zephyrnet.com/gbp-usd-price-analysis-boe-relieved-after-upbeat-uk-jobs/
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