In the European session on Tuesday (September 13), the latest price of GBP/USD was 1.1723, and the opening price was 1.1682. Britain’s unemployment rate fell to its lowest level since 1974 at 3.6% in the three months to July, official monthly data showed, as more people left the workforce, including the chronically ill and students. Economists had expected the unemployment rate to remain at 3.8%.
The ONS said employment rose by just 40,000 in the May-July period, less than a third of the increase economists had expected. The economic inactivity rate, which measures the proportion of the population not working and not looking for work, rose 0.4 percentage points to 21.7% in the second quarter. The Bank of England is concerned about an increasingly sluggish labor market, which could fuel inflationary pressures if job seekers fail to fill vacancies.
Sterling rebounded 1% to $1.1705 – a near two-week high and off a 37-year low of $1.1407 hit last week.