Spreadex Market Update
UK unemployment rate hits 11 year low of 4.9% as jobs report reassures pound
There were a series of surprises in this Wednesday’s assessment of the UK jobs sector. The most eye-catching number was the unemployment rate, which unexpectedly dropped to 4.9% for the first time since 2005. Wage growth wasn’t quite as exciting, coming in as forecast at 2.3%; that is, however, the best number since October’s reading, and suggests that employers weren’t too fazed by the run-in to the referendum.
Yet arguably the most important figure this Wednesday was the claimant count change reading, the only number out of the jobs report trio to come from June instead of May. Analysts had been expecting a 4.1k jump in those claiming unemployment-related benefits; instead there was only a 0.4k increase in claimants, news that proved to be a huge relief to the pound. Sterling rose just shy of 1% against both the dollar and the euro in the aftermath of the jobs report, climbing back to the levels it abandoned post-inflation reading on Tuesday. The FTSE was less enthused, maintaining its 20 point rise as the pound’s push hampered its growth.
Looking ahead to the US open and the Dow Jones is set to continue its high-altitude ascent, the futures pointing to a 70 point rise after the bell. That would leave the US index above 18600 for the first time in its history and, even more impressively, would mark an effective 3000 point rise from its February nadir.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
