The British Pound is getting stronger in response to good labour market data.
The British Pound is back to rising against the USD on Tuesday. The current quote for the instrument is 1.3547.
Earlier today, the United Kingdom released a lot of numbers on its labour market. For example, the Unemployment Rate in December remained unchanged at 4.1%. That’s good news, although investors were expecting some improvement due to the removal of COVID-related quarantine restrictions. The Average Earnings Index added 4.3% 3m/y after expanding by 4.2% 3m/y in the previous period.
The Claimant Count Change showed -31.9K in January after being -51.5K in December. The expected reading was -36.2K, but the actual one is also quite good.
Actually, the latter indicator is the most important one – it may be considered a leading indicator of the entire labour market in the country. And so far, the tendency here is positive, because a decline in the Claimant Count Change shows an improvement in the British economy.
Removal of coronavirus-related quarantine restrictions in the United Kingdom definitely was an excellent decision in favour of the Pound.