British Pound Muted After Better Than Expected Jobless Claims
- UK Jobless Claims fell more than estimated. Unemployment rate stood at 7.7%
- Little reaction from the British Pound
- Data Unlikely to drive hawkish shift in BoE outlook
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UK Jobless Claims fell more than economists expected in September, down 41, 700 from the prior monthversus estimates calling fora -25,000drawdownpenciled in ahead of the release. Augusts’ reading was revised higher to show a -41,600 drop, a better result than the -35,600 outcome originally reported.
The British Pound spiked briefly higher against the US Dollar following the release but gains were short-lived considering the report’s limited implications for near-term monetary policy.The Bank of England has vowed to maintain the interest rate at the current low level of 0.50 percent until the unemployment rate falls to a threshold of 7.0 percent. Today’s figures showed this critical threshold held at 7.7 percent while overall UK economic data has increasingly underperformed relative to expectations (according to data from Citigroup) over recent months. That leaves little scope for a hawkish shift in BOE policy bets
GBPUSD 5 Min: Oct 10, 2013
Chart created byCecilia Sanchez-Corona using Marketscope 2.0
-- Written by Cecilia Sanchez-Corona, DailyFX Research. Feedback can be sent to email@example.com
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