GBPUSD Loses Momentum On Weak UK Labour Market Report

UK pound lost momentum and edged lower against the dollar following weak unemployment data. The ILO Unemployment Rate edged higher to 4.3% in the three months to March from 4.2%, matching market expectation. The Claimant Count Change rose 8.9K, while the Employment Change was down 177K in April. Average Earnings Excluding Bonus rose 6% annually in the three months to March while Average Earnings Including Bonus were up 5.7% on year in the same period. GBPUSD pair came off intraday high of $1.2566 and was currently quoting at $1.2557, mildly lower on the day. UK 10-year government bond yield also dropped to around 4.14% following the release of labor data that raised bets the central bank will soon reduce interest rates. Dollar index staying steady awaiting a slew of US data also failed to guide the pair. Weaker labour market data is sending signals to BoE for an interest rate reduction although Powells remarks and US inflation data this week will be crucial for the pair.

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