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August 17, 2016

Pound tests local resistance at UK unemployment data but fails; European equities fall.

Pound tests local resistance at UK unemployment data but fails; European equities fall.

As official data showed on Wednesday UK jobless rate remained the same matching projections while the number of applications for unemployment benefits decreased in July, while the average salary report came in line with expectations

The Office for National Statistics reported that the unemployment rate in the UK was 4.9% for the three months to June which corresponds to the forecast.The number of applications for unemployment benefits unexpectedly fell in July by 8600 compared with expectations of increase in 9500, after rising by 900 a month earlier,

Meanwhile, average wages excluding bonuses showed 2.4% monthly growth to June matching forecasts, after increasing by 2.3% in the three months to May.Excluding bonuses wages rose by 2.3%, also in line with the consensus forecast, after the increase in the three months to June by 2.2%.The pound strengthened after the release of the data. GBP/USD pair is trading at 1.3052 dipping to 1.3014 before the release, while the EUR/GBP pair trades at 0.8630 after a rally to 0.8652 earlier in London session:

This is how reported affected GBP/USD:

Безымянный

 

Meanwhile, European stock markets continued to decline. London’s FTSE 100 index lost 0,15%, Euro Stoxx 50 fell 1.01%, France’s CAC 40 fell 0.67%, while Germany’s DAX weakened by 0.71%.

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