Forex News
The United Kingdom’s (UK) ILO Unemployment Rate fell to 4.9% in the three months to April after reporting 5.0% in the previous reading, data published by the Office for National Statistics (ONS) showed on Thursday. The data came in below the market consensus of 5.0%.
Additional details of the report showed that the number of people claiming jobless benefits rose by 31.2K in May, compared with a revised increase of 8.3K in April and the expected 25.8K gain.
The Employment Change data came in at 100K in April against 148K recorded in March, better than the 80K expected.
Meanwhile, Average Earnings, excluding Bonus, in the UK ticked up by 3.4% three months year-over-year (3M YoY) in April versus a 3.4% growth booked previously. The market expectation was for a 3.2% print.
Another measure of wage inflation, Average Earnings, including Bonus, climbed by 4.4% in the same period after increasing by 4.4% (revision) in the quarter through March. The data beat the estimate of 4.0%.
The British Pound (GBP) edges slightly higher in an immediate reaction to the UK employment report. At the time of writing, the GBP/USD pair is trading 0.14% higher on the day to trade at 1.3310.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.15% | -0.05% | 0.05% | -0.27% | -0.35% | -0.10% | |
| EUR | 0.14% | 0.00% | 0.13% | 0.18% | -0.13% | -0.26% | 0.04% | |
| GBP | 0.15% | -0.01% | 0.09% | 0.18% | -0.12% | -0.25% | 0.02% | |
| JPY | 0.05% | -0.13% | -0.09% | 0.11% | -0.23% | -0.36% | -0.07% | |
| CAD | -0.05% | -0.18% | -0.18% | -0.11% | -0.33% | -0.46% | -0.16% | |
| AUD | 0.27% | 0.13% | 0.12% | 0.23% | 0.33% | -0.13% | 0.16% | |
| NZD | 0.35% | 0.26% | 0.25% | 0.36% | 0.46% | 0.13% | 0.30% | |
| CHF | 0.10% | -0.04% | -0.02% | 0.07% | 0.16% | -0.16% | -0.30% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
What do United Kingdom employment report data mean for the British Pound?
The UK's Employment Report is one of the most closely watched economic releases as it provides insights into the health of the labor market, wage growth, and inflationary pressures. The Unemployment Rate is the broadest indicator of Britain’s labor mamarket. ong all the indicators, average earnings growth is particularly important because of its direct link to inflation and the Bank of England (BoE) decision-making.
Stronger-than-expected employment and wage growth data could provide some support to the GBP by prompting the BoE to maintain a tighter monetary policy stance. On the other hand, weaker labor market conditions generally weigh on the British Pound by increasing expectations for monetary easing.
Technical Analysis: GBP/USD keep a bearish vibe in near term
In the daily chart, GBP/USD maintains a modest bearish bias as price holds beneath the 20-period simple moving average from the Bollinger Bands and the 100-day moving average. The pair is hovering just above the lower Bollinger Band support, while the Relative Strength Index (14) around 40 hints at weak downside momentum rather than outright oversold conditions, suggesting pressure remains to the downside unless buyers reclaim the overhead averages.
On the topside, initial resistance is seen at the Bollinger middle band/20-period simple moving average near 1.3408, followed by the 100-day moving average at 1.3455, with the upper Bollinger Band around 1.3513 acting as a higher cap if gains extend. On the downside, the lower Bollinger Band at 1.3305 forms immediate support; a clear break below this level would open the door to further weakness, while holding above it could encourage a corrective bounce back toward the clustered moving-average resistance band.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
ILO Unemployment Rate (3M)
The ILO Unemployment Rate released by the UK Office for National Statistics is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the UK Economy. If the rate goes up, it indicates a lack of expansion within the UK labor market. As a result, a rise leads to a weakening of the UK economy. Generally, a decrease of the figure is seen as bullish for the Pound Sterling (GBP), while an increase is seen as bearish.
Read more.Last release: Tue May 19, 2026 06:00
Frequency: Monthly
Actual: 5%
Consensus: 4.9%
Previous: 4.9%
Source: Office for National Statistics
The Unemployment Rate is the broadest indicator of Britain’s labor market. The figure is highlighted by the broad media, beyond the financial sector, giving the publication a more significant impact despite its late publication. It is released around six weeks after the month ends. While the Bank of England is tasked with maintaining price stability, there is a substantial inverse correlation between unemployment and inflation. A higher than expected figure tends to be GBP-bearish.
Employment FAQs
Labor market conditions are a key element to assess the health of an economy and thus a key driver for currency valuation. High employment, or low unemployment, has positive implications for consumer spending and thus economic growth, boosting the value of the local currency. Moreover, a very tight labor market – a situation in which there is a shortage of workers to fill open positions – can also have implications on inflation levels and thus monetary policy as low labor supply and high demand leads to higher wages.
The pace at which salaries are growing in an economy is key for policymakers. High wage growth means that households have more money to spend, usually leading to price increases in consumer goods. In contrast to more volatile sources of inflation such as energy prices, wage growth is seen as a key component of underlying and persisting inflation as salary increases are unlikely to be undone. Central banks around the world pay close attention to wage growth data when deciding on monetary policy.
The weight that each central bank assigns to labor market conditions depends on its objectives. Some central banks explicitly have mandates related to the labor market beyond controlling inflation levels. The US Federal Reserve (Fed), for example, has the dual mandate of promoting maximum employment and stable prices. Meanwhile, the European Central Bank’s (ECB) sole mandate is to keep inflation under control. Still, and despite whatever mandates they have, labor market conditions are an important factor for policymakers given its significance as a gauge of the health of the economy and their direct relationship to inflation.
- USD/JPY hovers near 160.80, the highest level since July 2024 reached on Thursday.
- Japan's Minoru Kihara warned that the government is ready to respond appropriately to volatile currency moves at any time.
- US Dollar declined amid easing safe-haven demand following a preliminary US-Iran MoU to end the war.
USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours on Thursday. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.
In response to the currency's rapid decline, Japanese Chief Cabinet Secretary Minoru Kihara stated during a Thursday press conference that the government remains "ready to respond appropriately to currency moves as needed at any time." Kihara emphasized that officials are closely monitoring market developments and comprehensively evaluating their economic impact.
Meanwhile, the USD/JPY pair surrendered some gains as the US Dollar weakened due to fading risk aversion. This shift followed a BBC report confirming that US President Donald Trump and Iranian President Masoud Pezeshkian have signed a preliminary memorandum of understanding aimed at ending the US-Israel war on Iran.
However, the Greenback's downside may be limited, with potential to rebound against major peers as odds rise for a Federal Reserve interest rate hike later this year. According to the Fed’s June Summary of Economic Projections, half of the FOMC members still expect at least one rate hike in 2026. Despite recent economic disruptions linked to the conflict in Iran, a resilient US labor market and persistent underlying inflation continue to fuel monetary tightening pressures.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
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