GBPUSD exchange rate has steadily recovered to be close to 1.2550.
As the UK’s Office for National Statistics (ONS) released better-than-expected. Labor market statistics (May), the GBPUSD pair showed a strong recovery to close to 1.2550.
The change in the number of UK claimants has decreased by 13.6K, and the unemployment rate has decreased to 3.8%.
While the street was anticipating a reduction of 9.6K. The Claimant Count Change has decreased by 13.6K. Claimant Count Change increased by 23.4K in the previous month. In April, the three-month unemployment rate fell to 3.8% from estimates of 4.0%. And the prior report. of 3.9%
In addition, Average Earnings excluding Bonuses increased to 6.5% from the previous release’s 6.1%. And the consensus estimate of 6.1%. Investors should be aware. That the Bank of England (BoE) has continued to priorities rising earnings over persistent inflation.
Companies in the UK have been dealing with a labor shortage and are making up for it by paying out more. Brexit and individual early retirements continue to be important drivers of labor shortages
BoE Governor Andrew Bailey would unquestionably support. Further policy tightening by 25 basis points (bps) to 4.75%.In light of the robustness in the UK Employment figures.
S&P500 futures made respectable gains during the Asian session. However. On Monday, market showed a lot of interest in US equities since investors are hoping that this time. The Federal Reserve (Fed) wouldn’t raise interest rates. Given that the inflation rate is still higher than the anticipated rate of 2%. Hawkish guidance cannot be completely ruled out.
The US CPI pace is predicted to slow to 0.2%, but the core inflation rate may hold steady at 0.4%.
The US Consumer Price Index (CPI) data will be closely watch before the Fed decision. May’s monthly inflation is predicted to increase at a rate of 0.2%, which is less quickly than the 0.4% rate seen in April. However, the core CPI’s monthly rate, which excludes the cost of food and oil, is expected to remain constant at 0.4%.
