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Labor Report and Pound Movement

(CHART : Proportion of Population aged from 16-64 claiming key out of wok benefits for the last five years)

British Pound strengthened today against US dollar after the Office for National Statistics reported that the number of employment continued to increase and unemployment continued to fall. Employment was up 105000 from August to October 2013 and up 459000 on the year to 30.19 million for November 2013 to January 2014. The increase in employment came from more self-employed people whereas the number of employees fell during this period. The Claimant Count decreased 34600 in February from January 2014.

separate report on meeting minutes from Bank of England showed that all nine members of the Monetary Policy Committee votes for keeping the policy unchanged that is interest rate at record low of .5% and bank purchases of bonds at 375 billion pounds.

 On the hourly chart the pair surged from the resistance trend line of the descending triangle reversing the downtrend. However the pair found resistance at 1.6652 from which it started falling. The pair may follow sideways trend now and the resistance trend line may act as support for the pair. The investors are now keeping an eye on the FOMC statement due to release at 2:00 PM EDT. Fed is expected to reduce the stimulus program by another $10 billion a month.