Pound Slides As UK Employment Data Released
The British pound continued its downward trend against the Australian dollar during April after weak UK employment data was released. The GBP AUD exchange rate fell to a low of 1.713 after the data was published. The UK unemployment rate remained unchanged at 4.8% in the three months to February, while wage growth slowed down to 2.3%.
This indicates that headwinds continue to take their toll on the UK economy. Meanwhile, Australia’s unemployment rate fell to 5.5% in March, which could lead to further gains for the AUD USD exchange rate in the coming days and weeks.
UK Employment Data Shows Weaker Results
The Pound has fallen against the Australian Dollar after UK employment data showed weaker than expected results.
The data, which was released today, showed that the number of people in employment in the UK fell by 0.2% in the three months to March 2022. This was worse than the 0.1% decline that had been expected by economists.
The data also showed that the number of people claiming unemployment benefits rose by 7,000 in April 2022. This was the first increase in claimants since February and was worse than the 5,000 increase that had been expected.
The weak data will add to fears that the UK economy is struggling to recover from the pandemic, and it is likely to weigh on the Pound in the coming days.
Analysts Question Bank of England Rate Hikes
The Bank of England has released its latest inflation report, which shows that inflation has fallen to its lowest level in nearly three years. The report cites several reasons for the decline, including lower energy prices and a weaker pound.
Analysts say that the figures could mean that the Bank of England will not raise interest rates in the near future. Inflation is currently at its target rate of 2%, but the Bank has said that it would like to see inflation closer to 3%. The Bank’s next decision on interest rates is due in May.