The focus of investors in today’s European session was on the production of UK employment data which showed the highest increase in the number of employees since the start of the coronavirus outbreak.
Recruitment at UK companies rose by 356,000 in June from May, according to the latest estimates from the Office for National Statistics (ONS), the first full month after Covid-19 restrictions on hospitality, leisure and international travel companies were relaxed.
However, the unemployment rate for the three months to May rose to 4.8% from 4.7% expected and recorded last month (but lower than the previous quarter).
While the number of unemployment claims was reported to have dropped by 114,000 in June, it was much better than expected to drop by 32,500. Wages jumped 7.3% year -on -year in May, adding to concerns about rising inflation expectations.
On Wednesday, the UK inflation rate was reported to have risen 2.5% last month, well above the central bank’s target of 2%.
Even so, Bank of England (BOE) Governor Andrew Bailey in his latest statement today, said that he would not rush to raise interest rates even as inflation rises.
The pound rose slightly following this jobs report by trading around 1.3855 against the USD, but the rise was partly supported by the greenback which recorded a decline.
