It's Pound's Reaction Following Positive UK Employment Data

 The opening of the European session saw the publication of UK employment data showing the unemployment rate fell to a one -year low in July.

Most recently, the Office for National Statistics (ONS) reported that the unemployment rate met expectations by falling to 4.6% from 4.7% in the three months to July, the lowest figure ever seen since June-August 2020.

Meanwhile, employment at UK companies also rose with as many as 241,000 workers being added last month, bringing it back to pre -pandemic levels after more economic sanctions were eased.

Despite this increase, vacancies were at their highest levels as firms from across the economy sought to fill positions, particularly in the hospitality, transportation and storage sectors.

Job vacancies jumped 35% during the quarter, seeing the number recorded increase to 1.03 million. This is the first time it has increased to over 1 million.

Meanwhile, annual wage growth was seen to decline slightly, but remained high influenced by temporary factors that had boosted key growth rates.

Following this encouraging reading, the pound recorded a higher gain at the beginning of the European session by trading around 1.3860 against the USD.

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