BREAKIING: Strong British labor data, Pound appreciates

Change in unemployment benefits: -13.6k compared to the previous change of 23.4k (revised from 46.7k).

Change in employment 3m/3m: 250k (expected: 150k; previously: 182k).

Average weekly wages 3m/3m: 6.5% (expected: 6.1%; previously: 6.1%).

Detailed:

• Employment Rate:
  • Current Figure: 76.0% (Feb-Apr 2023)
  • Last Period Change: Increased by 0.2 percentage points from Nov 2022-Jan 2023.

• Payrolled Employees:

  • Current Figure: 30.0 million (May 2023)
  • Last Period Change: Increased by 23,000 from revised April 2023 figures.

• Unemployment Rate:

  • Current Figure: 3.8% (Feb-Apr 2023)
  • Last Period Change: Increased by 0.1 percentage points from the previous quarter.

• Vacancies:

  • Current Figure: 1,051,000 (Mar-May 2023)
  • Last Period Change: Fell by 79,000 from the previous quarter.

Good data from the perspective of the pound, as they increase the chances of further interest rate hikes, although at the same time, these could lead to a deeper economic slump. Nevertheless, the pound is the second strongest currency in the G10 today, after the Swedish krona.

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