UK Jobless Claims Fell in November; Unemployment Holds Steady
THE TAKEAWAY: UK jobless claims fall, unemployment as expected -> BoE focused on stimulating growth while containing inflation -> Cable well-bid today after yesterday’s drop
Job data from the UK today showed jobless claims falling from expectations in November. 3,000 Britons filed last month, below the 13,700 predicted by economists. The claimant count was 5.0%, also below the median forecast which stood at 5.1%.
Overall, UK unemployment held steady from October at 8.3% in accordance with expectations. Unemployment is current at a 17-year high, and is forecasted to drop further.
Today’s data may come as vindication for the Bank of England, which has recently been engaged in quantitative easing measures to stimulate growth. Under pressure to act against the fallout from the European credit crisis, the BoE recently held its asset purchase target at 275 billion Pounds, after increasing the measure by 75 billion Pounds in October.
Criticism of the measures has centered on increased risk of inflation caused by printing massive amounts of new money; however, November CPI data released yesterday showed drops on the month.
Currencies consolidated slightly today after coming under pressure versus the Dollar yesterday on a large bout of risk liquidation, during which the Euro broke under critical October lows at 1.3145. Cable found support by 1.5450 and has risen slightly today.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.