Pound Falls After Tepid Labor Market Data
(RTTNews) - The pound slipped against its major counterparts in the European session on Tuesday, as an increase in the nation's jobless rate pointed to softening in the labor market.
Data from the Office for National Statistics showed that U.K. unemployment rate rose to 4.3 percent in the three months to July from 4.2 percent in the preceding period. The rate came in line with expectations.
The employment rate dropped 0.5 percentage points from the previous quarter to 75.5 percent mainly due to the fall in full-time self-employed workers.
Data showed that pay-rolled employees decreased 1,000 from July to 30.1 million in August.
The Bank of England is widely expected to raise interest rates by 25 basis points at its monetary policy meeting next week.
The pound declined to a 4-day low of 1.2462 against the greenback and a 5-day low of 0.8599 against the euro, off its early highs of 1.2529 and 0.8569, respectively. The next possible support for the pound is seen around 1.22 against the greenback and 0.88 against the euro.
The pound weakened to 1.1112 against the franc and 182.93 against the yen, from an early high of 1.1167 and a 4-day high of 183.92, respectively. The pound is seen finding support around 1.10 against the franc and 180.00 against the yen.
Looking ahead, U.S. NFIB Business Optimism Index for August and U.S. Federal Budget Balance for August are slated for release in the New York session.
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