Should We Keep an Eye on the UK Unemployment Rate?

Should We Keep an Eye on the UK Unemployment Rate?

20.04.2021

Yesterday, a risk-off sentiment characterized by falling stock prices, a weaker dollar, and rising interest rates led to declines across all three major U.S. stock indices. The Nasdaq, in particular, fell nearly 1%, closing at 13,914 points—down 137 points from the previous day. Amid the spread of the novel coronavirus, the U.S. revised its travel advisories to classify 80% of the world’s countries as “Level 4: Do Not Travel,” fueling concerns about the economic outlook.

In the foreign exchange market, European currencies are gaining momentum, with the euro/dollar pair rising to 1.206. The euro/yen pair is also trading near the upper end of its range, around 130.5. Meanwhile, the pound, another European currency, is also performing strongly; the pound/yen pair rose by more than 100 pips yesterday and is currently attempting to break through its previous high, trading near 151.5.

Today, the UK unemployment rate and jobless claims, as well as Germany’s producer price index, are scheduled for release at 3:00 PM European time. Once U.S. trading hours begin, Canada’s house price index is set to be released at 9:30 PM. Additionally, New Zealand’s first-quarter consumer price index is scheduled for release at 7:45 AM the following day.We will closely monitor how the pound, which has been on an upward trend since yesterday, reacts to today’s unemployment rate release, while carefully comparing it to other currencies.