Yesterday, the pound held steady within a defined range against the loonie, even though May’s Claimant Count Change data showed weakness. Meanwhile, Canada’s building permit data for April exceeded expectations comfortably. Overall, the GBP/CAD pair traded in a range of between 1.7523 and 1.7557 in the past 24 hours.
Based on data from the UK Office for National Statistics, the Claimant Count Change in the country indicates alterations in the number of people claiming unemployment-related benefits, increased from 50,400 in May to 1.60 million, from 8,400 in the previous month. The reported figure was far higher than forecasts of 10,200.
Consequently, the UK’s unemployment rate inched up to 4.40% in May, from 4.30% in the previous month. Economists had anticipated an employment rate of 4.30%.
The UK’s pay-rolled employees fell by 36,000 (or 0.10%) in April 2024, compared with the previous month. However, on a y-o-y basis, the UK’s pay-rolled employees grew by 201,000 (or 0.70%) in April 2024.
According to the initial estimate provided by the ONS, the UK’s payrolled employees declined by 3,000 in May. However, on a y-o-y basis, the UK’s payroll employees grew by 167,000 in May 2024 to 30.30 million.
Also, the UK’s employment rate stood at 74.30% between February and April. In March, the UK’s total Workforce Jobs (WFJ) grew by 431,000 in the year to 37.20 million. Between March and May 2024, the number of vacancies in the UK fell by 12,000 in the quarter to 904,000.
Annual growth in employees’ average regular earnings (devoid of bonuses) rose by 6% in the February–April period. Including bonuses, the annual growth in total earnings was 5.90%.
According to Statistics Canada, the country’s building permits rebounded with a surge of 20.50% m-o-m in April to C$12.80 billion following a 12.30% decline in March and blew away forecasts of 4.90% growth.
Specifically, the expansion in the residential sector was propelled by unprecedented highs in the multi-unit segment, which surged by 32.6% to reach C$5.4 billion. Meanwhile, the single-family home segment experienced a modest increase of 2.4%, totaling C$2.6 billion. Construction intentions in the residential sector jumped 21% in April to C$8 billion.
The non-residential sector grew by 19.60% in April to C$4.80 billion. The increase was led by a 21.30% rise in the commercial sector. Also, the institutional and industrial sectors rose by 17.70% and 17.40%, respectively.
The weak UK economic data is expected to turn the GBP/CAD pair slightly bearish in the short term.
The historical price chart indicates that the GBP/CAD pair is rising after breaking the ascending triangle pattern. Additionally, the currency pair is trading above its 50-day moving average, while the stochastic indicator is in the bullish zone. Therefore, we anticipate the GBP/CAD pair to remain in an uptrend for the next few trading sessions.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
