Sterling extended its rebound against the US dollar on Tuesday after UK labour market data came in stronger than expected. GBP/USD rose 0.3% on the session, pushing above 1.3350 and trading more than 200 pips above last week’s low. The move kept the pair in a near-term upward bias, even as the wider employment release pointed to cautions elsewhere.
UK Unemployment Data Surprises
Figures from the Office for National Statistics showed the ILO Unemployment Rate falling to 4.7% in the three months to August, an unexpected decline and the lowest reading in more than a year.
Implications For The Pound And Economy
The unemployment data provided near-term support for the pound, while the rest of the report was described as containing warnings, leaving the broader policy and growth implications open.
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