U.K Unemployment Rate Effect

Chapter 19 U.K Unemployment Rate Effect

U.K: U. K’s Unemployment rate came unexpected at 3.6% from a 3.5% Forecast

Summary:

The British economy showed some strength versus the U.S Dollar after releasing the U.K Unemployment rate data on 15-11-2022 at 11 AM (GMT +4) with an unexpected result of 3.6%. GBPUSD increased from 1.1789 to 1.1880, but is this increase because of the unemployment rate?

1. Fundamentals

The U.K released the Unemployment Rate report on November 15, 2022. The Unemployment rate is one of the major indicators that affect the market widely, it measures the percentage of the total work force that is unemployed and actively seeking employment during the previous three months. A higher-than-expected data is bearish for the Pound, and lower-than-expected data is bullish for the Pound. The data came out to be 3.6% rather than the forecasted result of 3.5% which is supposedly bullish for the Pound. However, GBPUSD increased widely after this indicator but not because of the employment rate, it is because of the dollar index dropping sharply thus increasing major currencies Vs the USD. Bulls interfered, and the U.K economy showed some growth where GBPUSD increased from 1.1789 to 1.1880.