Pound Sterling to South Korean Won (GBP/KRW) Exchange Rate Edges Higher despite Poor British Data

British economic data produced mostly disappointing results on Wednesday which caused the Pound to soften versus the majority of its most traded currency rivals. June’s Claimant Count Rate held at 2.3% in line with economists’ forecasts. However, June’s Jobless Claims Change saw 7,000 new benefits claimers which was significantly higher than the market consensus of a drop in claims by -9,000. May’s Average Weekly Earnings was forecast to increase by 3.3%, but the actual result only reached 3.2%. Weekly Earnings ex Bonus also failed to meet with the median market forecast 3.0% growth, with May’s actual result only reaching 2.8%. ILO Unemployment Rate rose in May from 5.5% to 5.6%, and Employment Change declined by -67,000.

‘It’s possible that the rate of improvement in the labour market that we have seen over the last three years may have eased off, though it’s much too early to be certain,’ ONS statistician Nick Palmer said.

The Pound Sterling to South Korean Won (GBP/KRW) is currently trending in the region of 1790.1503.

Despite South Korea’s economic data meeting with expectations on Wednesday, the Won declined versus many of its currency rivals. June’s Unemployment Rate remained at 3.9% in line with the median market forecast. However, this was still a rise from May’s unemployment rate of 3.8%. The higher unemployment has been linked to the outbreak of Middle East Respiratory Syndrome (MERS) in South Korea which has claimed 36 lives and sickened 186 people. MERS has caused a sharp slowdown in growth of new hiring within the services sector, a government report stated on Wednesday.

‘The MERS outbreak pushed down the number of jobs created in certain service businesses,’ said Sim Won-bo, head of the agency's employment statistics division. Won-bo also stated that a drop in the number of jobs created within the agrofisheries and financial sectors also impacted the unemployment rate. ‘MERS poured cold water on employment figures that had been improving, with certain retail, tourism and entertainment-related jobs being hit hardest,’ stated the government report.

The Pound Sterling to South Korean Won (GBP/KRW) was trending within the range of 1782.6723 to 1792.4248 during Wednesday’s European session.