Morning Forex Fundamental: GBP

Morning Forex Fundamental: GBP

The data add to recent signs from business surveys that growing uncertainty about the economic outlook is causing increasing numbers of firms to retrench and focus on cost cutting' - Chris Williamson, economist at economic research firm Markit

U.K. jobless claims rose unexpectedly, unemployment fell

Impact Medium

The number of people, who filed applications for jobless benefits in the U.K., rose at its fastest pace in more than a year in October. The Office for National Statistics said on Wednesday that jobless benefit claims soared 10,100 to 1.58 million, up from an 800 increase in the prior month. In the meanwhile, the overall unemployment rate came at 7.8%, down from previous month’s reading of 7.9%, with 2.51 million people being currently out of work.

'The data add to recent signs from business surveys that growing uncertainty about the economic outlook is causing increasing numbers of firms to retrench and focus on cost cutting,' said Chris Williamson, economist at economic research firm Markit.

'Because growth is still quite sluggish there will be sluggish employment growth, and the unemployment rate may edge up a bit,' said Ross Walker, an economist at Royal Bank of Scotland Group Plc (RBS) in London.

The FTSE 100 Index turned lower 1.11 per cent to 5,722.01. The broader FTSE All-Share Index fell 1.04 per cent to 2,989.03