Before the release of UK labor data, the Pound Sterling had remained steady. After the Office of National Statistics released the information, though largely mixed, FX markets were satisfied with the outcome and pushed the Pound higher. The ONS reported that the ILO unemployment rate remained flat at 3.8%, as expected, while the claimant count rate was at 14.9K, significantly lower than expected at 22.6K, but flat given the revised previous reading to 14.9K. The average earnings with a bonus for the 3-month period through November came in unchanged at 3.2% against an expected drop to 3.1%. Without a bonus, the ONS reported that the rate came in at the expected 3.4%, from the previous 3.5% reading.
As of 11:22 am in London, the GBP/USD was trading higher at $1,3055, a gain of 0.3729% and easing back from the session peak of $1.30592. The EUR/GBP was lower at 0.8506 Pence, down 0.2743%; the pair has ranged from a trough of 0.85025 Pence and a peak of 0.85373 Pence.
ZEW Surveys Boost EUR/USD
In the Eurozone, the ZEW surveys of economic sentiment were released earlier today for Germany and the Eurozone market, as a whole. Generally, the readings showed improvement from previous surveys. Germany's current situation came in with a reading of -9.5, though in the negative significantly better than the previous -19.9; analysts had predicted an improvement to -13.5. January's economic sentiment is better at 26.7, against a predicted 15, and up from the previous 10.7 reading. The Eurozone reading for economic sentiment came in at 25.6, a significant improvement from the 11.2 of the previous reading and much higher than the 5.5 that had been predicted. The news helped to push the EUR/USD higher, with the pair trading at $1.1108, up 0.10% and off the session high of $1.11104.