Trade Desk Thoughts - U.K. Unemployment Rate

U.K. Unemployment Rate Actual 5.7%, Expected 5.6%, Previous 5.5%

Release Explanation: Measures the number of jobs created, or the percentage of employed/unemployed in the labor market. It is 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 the U.K., in the latest three months to August 2008. The released number of 5.7% is higher than market expectations of 5.5%. The unemployment rate has started to rise as the U.K. economy continues to slow.

Forex Technical Reaction: The pound rose 15 pips at the time of the release, and is now trading just under the neutral pivot point (1.7470). Against the euro, the pound gained today 40 pips

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