The Pound is not giving up on its plans to grow. Overview for 27.01.2021
GBPUSD is still rising and ready to update its local highs.
The British Pound is looking pretty confident and challenging against the USD on Wednesday. The current quote for the instrument is 1.3742.
The statistics published by the United Kingdom yesterday showed that the Unemployment Rate in the country rose from 4.9% in October to 5.0% in November, while the expected reading was worse, 5.1%. However, the negative unemployment report was partially compensated by the Average Earnings Index, which added 3.6% 3m/y in November after expanding by 2.8% 3m/y in the previous month and against the expected reading of +2.9% 3m/y. A slight decrease in the first indicator resulted in a slight growth in the second one, thus making conditions in the segment more competitive.
By the way, the November reading on unemployment was the highest since 2016.
The Claimant Count Change showed 7K in December after being 38.1K the month before and against the expected reading of 47.5K.
At the moment, there is a government program in the United Kingdom that is focused on keeping the number of jobs in the country. The program is one of the measures intended to fight the coronavirus pandemic consequences. It’s quite expensive and will last until May of 2021 or maybe longer, depends on the government and internal conditions.
Earlier, the Bank of England said that the real state of affairs in the employment sector might be much worse than the numbers showed.
The Pound is not paying attention to such statements so far because the statistics are positive in many ways. No one knows how the British economy will feel after exiting the alliance, that’s why all positive information is taken into account, just in case. Another thing that supports the Pound is the fact that the “greenback” is getting weaker.