GBPUSD is rising to its highest level since the end of February

Last Updated on June 1, 2021

GBPUSD rose after relatively optimistic jobs data in the United Kingdom and the weakening of the US dollar, in addition to investor optimism about measures to ease restrictions imposed by the government to limit the spread of the Coronavirus over the past four months.

The GBPUSD pair traded on Tuesday morning at $ 1.4183, the highest since February 24, up 0.4% from the opening levels.

GBPUSD

GBPUSD rose after Stable UK job data

The UK job market was relatively resilient in March as the government continued to reopen the economy, according to the Office for National Statistics (ONS). The economy added more than 97,000 jobs in March while the number of vacancies rose by about 13%.

At the same time, the unemployment rate surprised the market, after falling to 4.8% from 4.9% in the previous reading, while expectations indicated that the unemployment rate will remain unchanged at 4.9%.

The unemployment rate in the United Kingdom is much better than in other countries such as the United States, Germany, and France, however, these figures came at a great cost and the government is still supporting the economy with the use of the vacation program.

UK employment data

One market analyst says the unemployment rate will continue to decline in the near term as the demand generated by reopening the economy creates new jobs.

GBPUSD will interact later with the upcoming UK inflation data that will be released tomorrow. Economists expect the data to show that the General Consumer Price Index (CPI) rose by 0.6% during the month of April, and on an annual basis, the index will increase by 1.4%.

At the same time, analysts expect the core CPI to increase, excluding volatile food and energy prices, by 0.4%, and on an annual basis, will rise by 1.3%, although these numbers are still less than the numbers targeted by the Bank of England. Moving in the right direction.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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