Release Explanation: Measures the number of jobs created, or the percentage of employed/unemployed in the labor market. It is very important that economic forecasts are based on the labor market. Economic strength builds from the willingness/confidence of firms to hire, without a strong labor market growth is hard to achieve.
Trade Desk Thoughts: The unemployment rate increased again in the U.K. in the latest three months to January 2008, to the highest rate seen in the last decade. The released rate of 6.5% is in-line with market expectations. The number of unemployed people increased by 165,000 over the quarter and by 421,000 over the year, to reach 2.03 million (the highest figure since 1997).
Forex Technical Reaction: The pound had a very strong reaction to the news release, falling nearly 60 pips. Since the beginning of the European session, the pound has fallen 170 pips against the dollar, and 120 pips against the euro.