The GBP/USD pair rose today after the ONS released British employment figures.
The unemployment rate rose from 4.5% in August to 4.8% in October, in line with expectations.
The pair also rose on rising hopes for a new Covid vaccine and therapy.
The GBP/USD pair rose more than 0.75% today as traders responded to relatively strong employment figures from the UK. It is trading at 1.3268, the highest level since September 7th.
GBP/USD Rises According to UK Employment Data
Unemployment rate in Great Britain rises
The unemployment rate in the United Kingdom rose in September, although the government continued its vacation plan. According to the Office of National Statistics (ONS) the unemployment rate rose from 4.5% in August to 4.8% in September. This figure was in line with the expectations of the analysts surveyed by Reuters.
Overall, the economy lost a record 314,000 jobs in June, July and August. This was the largest increase in job losses in decades. In addition, the ONS estimated, based on high-frequency data, that an additional 33,000 people lost their jobs in October.
On a positive note, the number of applicants in October fell by 29.8 thousand. This was better than the 50,000 increase expected by analysts. Earnings plus bonuses also rose by 1.3%, while those without bonuses increased by 1.9%. In a statement the chancellor, Rishi Sunak, said
“I know that this is a hard time for those who have unfortunately already lost their jobs, and I want to assure all those who are worried about the coming winter months that we will continue to support those affected.
The ONS figures came a few days after the British government announced a new closure in England. The government also pledged to continue its leave program until March next year. Under this program, the government pays salaries to most workers. This has helped to keep the unemployment rate in Britain lower than in the United States and the rest of Europe.
The GBP/USD is also rising on hopes of a rapid economic recovery if the Covid vaccine becomes available. In a statement yesterday, Pfizer and BioNTech announced that their vaccine is 90% effective. In addition, the FDA allowed Eli Lilly to make her Covid antibody drug available.
Regardless, the British pound is also rising due to positive results from Taylor Wimpey and Persimmon, two of the country’s largest home builders. The results showed that the British housing market remains robust.
Technical outlook GBP/USD
Technical Table GBP/USD
On the daily chart we can see that GBP/USD has been in a strong bullish trend lately. The current price is above the rising trend line that connects the May, June, September and November lows. The uptrend is also supported by the 25-day and 15-day exponential moving averages. Therefore, it is likely that the pair will continue to rise as the bulls target the September high of 1.3485. Start trading by reading our report on the best forex brokers with high leverage.