The pound sterling suddenly iincreased significantly in European session trading yesterday. Or in 17 of May 2022. The trigger is publication of encouraging BRITISH labor data. 

The GBP/USD currency pair rocketed high for about 1.3 percent to In this week high of 1.2485. Meanwhile, EUR/GBP plunged by 0.8% to the range of 0.8400 In the market. 

Elsewhere ,another pair known as GBP/JPY soared nearly by 1.5 percent And touched the level of 161.50s. United kingdom created 83k jobs for the last 3 months.

This period was ended in March 2022. The numbers are higher than what are expected by market with only 5k increase. It means that the country did their job really well so far. 

Jobless Level is in It’s Lowest Level

Surprisingly, the jobless rate in United Kingdom also decreased from 3.8% to become 3.7%. The good thing is that, this is the lowest jobless rate that they have in last 50 years period. 

A drastic increase can be also found for their average income index and bonus which reached 7%. That was for this March 2022 where it far exceed the expectation owned by consensus.

For your information, the consensus expectation is around 5.4%. The declining jobless rate like that and increasing salary may trigger a higher inflation than before. This is usually happened in the market. 

That is why; this UK jobless rate may push the Bank of England or known as BOE to keep raising their interest rate. This situation will be a thing to consider by that institution.

Market Participants Sell their Pound Sterling

Market participants last week did a selling action to pound sterling currency. The reason is BOE which increased the interest rate a little bit more than the expectation. 

Andrew Bailey as the governor of that institution gave his sign to have a more conservative attitude in taking any monetary policies. Everything is based on an assumption that Jobless Rate in UK will continue to increase.

It is especially due to an economic slowdown which is happened amidst the inflation increase. However, data showed that the unemployment level in that country is keeping down. 

That positive trend continues to occur although the prices of good is getting higher. The Risk-off economic slowdown is always shadowing at the same time. This concern makes people more aware. 

Some Released Data are Profitable for Sterling

Sterling got a positive impact from some surprising releases of data made on Tuesday morning. The numbers of jobless and salaries are beyond the expextation made by most parties. 

That situation shows a more positive overview for economy in the United Kingdom than a prediction made before. With that background, expectation has been increasing for BOE institution.

It is especially to raise their monetary tightening speed. A prediction made due to inflation data that will be released as soon as possible. That may be more than 9 percent and not less than that. 

With that condition, the representatives of Bank of England may not have another option except increasing their interest rate and create a space for a further pound increase. 

An Improvement Market Risk Interest Supports Pound Sterling

It can be seen that the improvement of market risk interest is happened and in fact this condition also becomes a factor which supports the Pound Sterling. There is a reason why it could be like that. 

An improvement on market risk interest keep pushing the United States dollar in today forex market. That could be seen from many data released by several parties related to the currency pairs. 

The next move is maybe affected by the speech made by Jerome Powell as the Fed leader. Furthermore, it is also caused by some essential economic data for some days further.