Pound Climbs As UK Jobless Rate Remains At 43-year Low

The pound advanced against its major counterparts in early European deals on Tuesday, after a data showed that the UK unemployment rate remained unchanged at the lowest level since 1975 in the three months to March.

Data from the Office for National Statistics showed that the ILO jobless rate remained at 4.2 percent in the first quarter, but down from 4.6 percent a year ago. This was the joint lowest since 1975.

There were 1.42 million unemployed in the first quarter, which was 46,000 fewer than for October to December period.

At the same time, the employment rate was 75.6 percent, the highest since comparable records began in 1971.

Investors also kept an eye on the second round of trade talks between the U.S. and China taking place this week.

The currency traded mixed against its major rivals in the Asian session. While the pound rose against the greenback and the yen, it held steady against the franc and the euro.

Following a decline to 148.58 against the yen at 4:15 am ET, the pound edged up to 149.01. The next possible resistance for the pound is seen around the 151.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity index decreased at a faster-than-expected pace in March.

The tertiary activity index dropped 0.3 percent month-over-month in March, reversing a 0.1 percent rise in February. Economists had expected a 0.2 percent fall for the month.

The pound bounced off to 1.3565 against the Swiss franc, from a 5-day low of 1.3526 hit at 4:00 am ET. The pound is seen finding resistance around the 1.38 area.

The pound rose back to 0.8795 against the euro, after having fallen to 0.8818 at 4:00 am ET. The pound is thus heading closer to pierce a 4-day high of 0.8791 set at the beginning of today's trading. On the upside, 0.86 is likely seen as the next resistance level for the pound.

Flash estimate from Eurostat showed that Eurozone economy expanded at a slower pace as previously estimated in the first quarter.

Gross domestic product grew 0.4 percent sequentially in the first quarter, slower than the 0.7 percent expansion seen a quarter ago.

The pound recovered to 1.3559 against the greenback, from a low of 1.3524 hit at 4:00 am ET. If the pound continues its rise, 1.37 is possibly seen as its next resistance level.

Looking ahead, Canada existing home sales for April, U.S. retail sales for the same month, business inventories for March and NAHB housing market index for May are scheduled for release in the New York session.

At 12:45 pm ET, San Francisco Fed President John Williams speaks at the Economic Club of Minnesota May Luncheon in Minneapolis.

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