- The pound cut losses against Yen despite the weak employment data of the United Kingdom.
- Political uncertainty in Japan and a prolonged decrease in exports are weighing on the JPY.
- In the United Kingdom, unemployment increased at its highest rate in the last four years.
The pound has ignored the impact of the gloomy employment figures in the United Kingdom, earlier today to rebound in front of a weaker Japanese, affected by the growing political uncertainty and the lack of advances in commercial negotiations with the US.
The JPY is suffering on Thursday as political uncertainty grows in Japan, after a survey that suggests that the ruling coalition of Prime Minister Ishiba will probably lose its majority in Parliament after Sunday’s elections.
The uncertain political scenario adds anxiety to investors about the lack of advances in commercial negotiations with the US, since the country’s exports decrease per second consecutive month. These figures represent a significant challenge for an economy that depends largely on international trade.
The weakness of the Japanese Yen has compensated the impact of the disappointing employment figures from the United Kingdom seen earlier today. The data of the National Statistics Office revealed that the unemployment rate increased to 4.7% in June, against expectations. Applications for unemployment benefits decreased to 25,900, from 33,100 last month, but failed to comply with the market consensus of a greater decrease, to 17,900.
Economic indicator
Unemployment ilo rate
The unemployment ilo rate published by the National Statistics corresponds to the percentage of unemployed within the universe of active population. It is a key indicator for the British economy. When this rate rises, it indicates a containment in the expansion of the United Kingdom in the field of the European Union labor. As a result, the growth of this rate entails a weakening of the British economy.
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Last publication:
Jul 17, 2025 06:00
Frequency:
Monthly
Current:
4.7%
Dear:
4.6%
Previous:
4.6%
Fountain:
Office for National Statistics
The unemployment rate is the widest indicator of the British labor market. The figure is highlighted by the media, beyond the financial sector, giving the publication a more significant impact despite its late publication. It is published about six weeks after the end of the month. Although the Bank of England has the task of maintaining price stability, there is substantial inverse correlation between unemployment and inflation. A figure higher than expected tends to be bassist for the GBP.
Economic indicator
Change in unemployment requests
The change rate of unemployment subsidy requests published by National Statistics It is a monthly estimate of unemployment in the United Kingdom. Indicates the strength of the labor market. If the rate increases, this indicates expansion in the labor market and would imply a rise in inflationary pressures. In this way, an increase implies the weakening of the United Kingdom’s economy. A reading superior to expectations is bullish for the pound, while a lower reading is bassist.
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Last publication:
Jul 17, 2025 06:00
Frequency:
Monthly
Current:
25.9K
Dear:
17.9K
Previous:
33.1k
Fountain:
Office for National Statistics
The change in the number of people who demand unemployment benefits is an early indicator of the United Kingdom labor market. The figures are announced for the previous month, contrary to the unemployment rate, which is for the previous one. This publication is scheduled for the middle of the month. An increase in applications is a sign of a worsening of the economic situation and implies a more relaxed monetary policy, while a decrease indicates an improvement of conditions. A higher than expected result tends to be bassist for the GBP.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
