(MENAFN– ecpulse) A crucial day stands ahead of the United Kingdom as the Office for National Statistics in London releases the UK unemployment report for May. Thanks to the Bank of England linking its benchmark interest rate to the country’s data, the recent labor market data release has been ungraded to ‘must watch’ status.
The ILO unemployment rate for the same period was probably declined to 6.5 percent, marking its lowest levels in more than 4 years.
The ILO unemployment rate has been falling rapidly in the last few months. Unemployment dropped to 6.6 percent last month from 6.8 percent in March.
The unemployment report will include also data about average weekly earnings that reflects progress or deterioration in consumer spending. Average weekly earnings for the quarter through May probably decelerated to 0.5 percent from a prior of 0.7 percent, while the gauge excluding bonus may have recorded 0.8 percent from a previous of 0.9 percent.
Upbeat expectations and economic recovery signs continue to boost UK growth, easing pressure on the BoE to consider more stimulus plans in order to put the royal economy on a more sustainable footing.
In the previous session, UK inflation accelerated more than expected in June where consumer prices rose 1.9 percent in June from a year earlier, up from 1.5 percent in May. On the monthly basis, the reading rose 0.2 percent from the prior of 0.1 percent drop.
Also yesterday, BoE governor Mark Carney said the central bank`s forward guidance policy aimed to signal how interest rates might change over the medium term, not pinpoint the timing of a first hike.
As of 10:09 GMT +3, the pound declined to $1.71335 after opening at $1.71434. The GBPUSD pair so far hit session high at $1.71448 and low at $1.71297.
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