The unemployment rate remained in the first quarter at the level of 4.2%, in level with expectations. The payroll dynamics - also in line with forecasts - slowed from 2.8 to 2.6%, but the index excluding the premium was placed at 0.1 percentage point higher than before, or 2.9%. This is the highest value in three years. The data is absolutely in line with expectations, and the minimal flaw in the labor market image is a stronger increase in the number of people claiming benefits. The readings do not add anything new to the discussion about the date of the next interest rate hike, moreover, another important publication is the next week's inflation reading (scheduled on 23.05).
In the last week, the pound was among the weaker currencies from the main currency group and did not gain against the dollar at that time. In the first reaction to a set of data from the UK labor market, GBP/USD moved from around 1.3530 to 1.3550 but still, the demand side cannot break away at a safe distance from 1.35 and this year's lows. Just published data from the British labor market may not be enough to improve the sentiment around the pound sterling. On the contrary, in the eyes of a significant number of market participants, with a stronger dollar and yields of US 10Y debt flirting with a key resistance of 3.05%, they may be a good opportunity to sell a pound. The key technical resistance is seen at the level of 1.3617, located at the top of the consolidation zone between the levels of 1.3460 - 1.3617.
