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 November 2008, to the highest rate seen in the last decade. The released rate of 6.1% is in-line with market expectations. The number of unemployed people increased by 131,000 over the quarter and by 290,000 over the year, to reach 1.92 million (the highest figure since the three months to September 1997).
Forex Technical Reaction: From the high reached in the Asian session, the pound tumbled nearly 300 pips during the European trading hours. The bad fundamentals coming out of the U.K. lately has dragged the pair to a 8 year low. Today's news releases produced a weak, as the pair moved only 20 pips.