By David Schutz, THE TAKEAWAY -> UK job market weak -> Pound bucks trend due to broader Dollar weakness and positive Euro dataWeak data today from the UK labor market – although jobless claims data came in slightly better than expected at 17.5K versus the predicted 24.0K (compared to last month’s revised figure of 19.1K), the claimant count rate was in line with the predicted 5.0%, growing from last month’s 4.9%, and the 3-month ILO unemployment rate rose to 8.1% from last month’s 7.9% and the predicted 8.0%. The data brings the total number of unemployed people in the UK to 2.57 million. Average earnings over the past three months stayed at 2.8%, and executive bonuses were 1.8% versus the expected 2.0%.The Pound dropped slightly against the dollar after the labor data hit the market; however, it quickly recovered its losses and is rallying on the day due to broad-based US dollar weakness. The Euro’s break above 1.3700 today, helped by stronger-than-expected industrial production data from the Eurozone, has triggered a wave of buying and caused the Pound to break up through a key upward barrier at 1.5715. The move above 1.5715 confirms the formation of a technical double bottom which now projects potential gains back above 1.6000.
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