Good news started the day for sterling today, besides the unexpected switch from Adam Posen from the dovish campsite and view of higher inflation risk over the medium term, the labor market offered signs of improvement that is hoped to be the start of more development.
The claimant count rate in March unexpectedly was revised lower from 5.0% to 4.9% in February and held steady in March at this level opposed to expected stability at 5.0%. The jobless claims change also was better than expected rising only 3.6 thousand from a downwardly revised 4.5 thousand from 7.2 thousand and was better than the expected rise of 6.0 thousand.
In the three months to February the ILO unemployment rate also declined unexpected to 8.3% from 8.4% and although still elevated the decline remains favorable on hopes of more stability. The average weekly earnings declined to 1.1% on the year from a revised 1.3% from 1.4% and below the expected 1.2% and excluding bonuses it was in line with expectations and the revised previous at 1.6% from 1.7% previously reported.