Trade Desk Thoughts - U.K. Unemployment Rate

U.K. Unemployment Rate Actual 5.5%, Expected 5.4%, Previous 5.4%

Release Explanation: Measures the number of jobs created, or the percentage of employed/unemployed in the labor market. Very important that economic forecasts are based on the labor market. Economic strength builds from the willingness/confidence of firms to hire, without a strong labor market growth is hard to achieve.

Trade Desk Thoughts: The unemployment rate increased again in UK, in the latest three months to July 2008. The released number of 5.5% is bigger than market expectations of 5.4%. Recently, the unemployment rate has started to rise, as the U.K. economy continues to give signs of fatigue.

Forex Technical Reaction: The pound fell 40 pips at the time of the release, and is now trading just under the neutral pivot point (1.7850).

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