Pound Pressured after Labor Data
The Pound Sterling continued to be under pressure as FX traders assess the latest employment data out of the UK. The only bit of good news in today's figures was the fall in the unemployment rate to 3.8% from the 3.9% that had been expected; otherwise, the data is disappointment. The Office of National Statistics reported that average earnings, excluding a bonus, was as expected at 3.3% (annualized) for the 3-month period through March, largely as expected and below the previous reading of 3.4%. Average wages including a bonus failed to meet analysts predictions at 3.2%, down from 3.4% expected, and the previous reading of 3.5%.
As reported at 11:25 am (GMT) in London, the GBP/USD was trading lower at $1.2952, down 0.0532% and moving off the session trough of $1.2923 while the peak was recorded at $1.2970. The EUR/GBP was trading at 0.8671 Pence, a gain of 0.1513%; the pair has ranged in today's trading from a low of 0.86593 Pence to a peak of 086917 Pence.
EU Economic Surveys Indicate Investor Wariness
Key economic data from the Eurozone was also released today, with Germany's ZEW Surveys showing that the business leadership's assessment of the current situation in Germany came in at a solid 8.2 reading against a predicted 7.5, up from 5.5 in the previous reading. The economic sentiment for May, however, was a different story entirely with a -2.1 reading against expectations of a rise to 5.0; the reading reflects the degree of optimism versus pessimism among investors. The ZEW survey of economic sentiment for the Eurozone was also in negative territory at -1.6, lower than the 1.0 that had been predicted and a fall from the previous 4.5. The EUR/USD was trading at $1.226, up 0.0241%, moving off the session trough of $1.2233.