Photo of candidates waiting for a job interview.

The GBP/USD was at a standstill after the release of the UK’s Labor data. The pair was trading at 1.3558 which was slightly lower than the previous day.

GBP/USD Outlook

UK Employment Data

The number of payroll employees in the UK showed a monthly increase in June. The numbers were up 356,000 to 28.9 million. However, the numbers were still 206,000 before the pre-pandemic levels.

Since the start of the pandemic, the employment rate has decreased while the unemployment rate has increased. This had the GBP/USD pair on an unstable trend. However, since the end of 2020, both the employment and unemployment rates signaled a recovery.

March to May 2021 indicate a quarterly decrease in the unemployment rate while employment and economic inactivity rates increased. With the easing of lockdown, restrictions, total hours worked increased.

UK employment rate was estimated to be 74.8% which was 1.8% lower than the pre-pandemic levels. The unemployment rate in the United Kingdom was estimated at 4.8% which was 0.9% higher than the pre-Covid era. UK economic inactivity rate came in at 21.3% and was higher than the pre-pandemic levels.

The number of job vacancies from April to June 2021 came in 77,500 (9.9%) higher than its pre-pandemic levels. The number of estimated job vacancies was 862,000 which was a 38.8% growth compared with the last quarter.

US Economic Outlook

The GBP/USD pair edged higher after the US PPI data on Wednesday. The final demand index for June came in 1.0% higher beating the 0.6% estimate. The PPI index rose 7.3% YoY which was the highest level since November 2010.

The increase in prices for final demand services was the biggest contributor to the advance in the final demand index.

The GBP/USD will react to the weekly US initial jobless claims data. economists expect the claims to drop to 360,000 from 373,000.

Jerome Powell’s appearance before the Congress is still on for Thursday. According to the Fed chair on Wednesday, the Federal Reserve is not ready to alter its monetary policy. Powell reiterated that current inflation could be transitory. The Fed will consider tapering its monetary stimulus amid stable inflation growth.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

GBP/USD Forecast with BoE Interest Rate Decision on the Horizon

GBP/USD is seesawing along 1.3800 ahead of the BoE interest rate decision. It is likely to be range-bound between 1.3800 and 1.3900 ahead of the event.

EUR/USD Forecast Ahead of US Inflation and Retail Sales Data

The EUR/USD pair surged on Friday after the disappointing US non-farm payrolls (NFP) data. The US will publish the latest inflation and retail sales data.

GBP/USD Forecast Ahead of the UK Retail Sales

GBP/USD has eased on its decline ahead of the UK retail sales data. The data comes at a time when UK government postponed reopening by a month.

EUR/USD In The Red Ahead of Jobless Claims

The EUR/USD pair has been on a bearish consolidation for the past few days. According to data published on Wednesday, eurozone inflation improved in July.