Hi,
lets say: I habe the GBP/USD currency pair (I went long a couple of days ago) and the US unemployement Report comes out and says: the unemployment rate has risen from 5.5% to 5.8% (only an example). Can someone please analyze this situation and tell what is the right thing to do?
Thanks
Unemployment weakens a countries currency because when the unemployment is high there is likely a delay in interest rate . Interest rate is a key determinant in the in short term exchange rate movement and so can make a currency less attractive.
A higher rate of unemployment is generally a bad indicator for the economy, and consequently for its currency, due to a confluence of reasons, the prime ones of which are the central bank’s future actions which will likely try to deal with the unemployment by monetary easing (cutting rates/printing money).
So, in the situation you describe, if you’re long GBP/USD, and the US unemployment figures come out bad, this is good news for your position and you should probably retain or increase it.
Unemployment is part of the economic situation that affect currency trading. The unemployment rate can cause market moderate market volatility . When there is low unemployment it tend to appreciate currencies because it could lead to high interest rate and when unemployment is high it lead to lower interest rate.
Unemployment rate is a very important fundamental analysis that affects currency trading; lets take this scenario as an instance if USA experience a 5% raise on the unemployment rate, this will have a negative effect on dollars because investors will start pulling money away from the USA economy while traders will begin to sell their dollars to buy other currencies with a more stable economy.
i will start with common information about unemployement rate.
Measures : Percentage of the total work force that is unemployed and actively seeking employment during the previous month
Usual Effect : Actual < Forecast = Good for currency
Frequency "Released monthly, usually on the first Friday after the month ends.
in your case, simply is USD would weaken, as affect GBPUSD would go higher, a bearish occur, what should you, BUY!
disclaimer : based on your example, actual result may differ. 
Don’t forget to note what expectations were.
If it was expected to go from 5.5 to 6.0 but only went to 5.8 thats good
If it was expected to go from 5.5 to 5.6 but went to 5.8 that’s bad
A high unemployment rate can have a big strain on economy data and also have impact on currency rate.