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The British pound has moved higher against the US dollar and the euro currency this morning, following the release of solid jobs data and a decline in the unemployment rate.
Markets are generally very cautious ahead of the US CPI report, however, the GBPUSD pair has caught a notable price bid and is back trading above the 1.1700 level.
The GBPUSD pair has strong upcoming resistance around the 1.1850 level if the rally continues, while the EURGBP pair has strong support around the 0.8640 area.
Looking at the details of the UK jobs report, firstly, the jobless rate declined to 3.6%, which was a positive point to take note of as the UK economy has struggled this year amidst COVID-19 and rising inflation.
Payroll employees for August showed a monthly increase, up 71,000 from July to a record 29.7 million, however, total hours worked is seen dropping in the three months to July by 3.5 million hours to 1.04 billion hours.
Meanwhile, pay growth continues to come in strong but has been declining in real terms and that says a lot about the current situation with inflation continues to harm the UK economy.
Breaking down the number today from the UK jobs report the prior months reading of 73,000 was revised upwards to 77,000, while the July ILO unemployment rate 3.6% vs 3.8% expected.
The July Employment change for the United Kingdom economy was 40,000 vs 128,000 expected by economists. For the record the prior reading was 160,000.
On the UK Wage situation, the July average weekly earnings were +5.5% vs +5.4%. July average weekly earnings (ex-bonus) +5.2% vs +5.0%. The previous was +4.7%.
In terms of UK stocks, the FTSE100 is slightly higher today and is currently on course for a fourth day of days following its spectacular reversal since last Thursday.
