Pound Rises After U.K. Robust Jobs Data

(RTTNews) - The British pound strengthened against other major currencies in the European session on Tuesday, after the U.K. unemployment rate dropped unexpectedly in the second quarter.

Data from the Office for National Statistics showed that the unemployment rate fell to 4.2 percent in the three months to June period, while the rate was expected to rise marginally to 4.5 percent from 4.4 percent in the preceding period.

Excluding bonus, average earnings climbed 5.4 percent from the previous year, slower than the 5.8 percent rise in the prior period. The growth rate was forecast to slow to 4.6 percent.

At the same time, average earnings including bonuses grew 4.5 percent, data showed.

In July, pay rolled employees increased 24,000 to 30.4 million. This follows an increase of 14,000 in June.

Investors await a slew of U.S. economic data for additional clues on the Federal Reserve's policy outlook.

The Labour Department's report on producer price inflation for July is due later in the day and consumer price inflation on Wednesday.

In the Asian trading today, the pound showed mixed trading against its major rivals. While the pound rose against the yen and the Swiss franc, it held steady against the euro and the U.S. dollar. In the European trading now, the pound rose to nearly a 2-week high of 189.52 against the yen, from an early low of 187.67. The pound may test resistance near the 200.00 region.

Against the euro and the U.S. dollar, the pound advanced to 8-day highs of 0.8532 and 1.2813 from early lows of 0.8565 and 1.2763, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.83 against the euro and 1.29 against the greenback.

The pound edged up to 1.1116 against the Swiss franc, from an early low of 1.1044. The pound may test resistance near the 1.14 region.

Looking ahead, Germany's ZEW economic sentiment survey results for August are due to be released in the European session at 5:00 am ET.

In the New York session, U.S. PPI for July, U.S. Redbook report and U.S. NFIB business optimism index for July are slated for release.