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UK Jobless Numbers Fall Again
GBPUSD is attempting to push higher today on the back of the latest UK labour market data released this morning. The jobless rate was seen falling back to 4.1% in the three months up to July, down from 4.2% prior. The number of people working in the UK was seen rising to its highest level in 18 months with 265k people joining the workforce. The number of people claiming jobless support over the same period was seen at just 23.7k, down from 102.3k prior and well below the 95.5k the market was looking for. Finally, wage growth in the UK was seen falling once again, down to 4% from 4.6% prior, below the 4.1% the market was looking for.
BOE Vs Fed
In all, the data was seen as broadly positive for the UK. Signs of continued strength in the labour market show that the economy remains resilient while weaker wage-growth suggests that recent weakness in inflation readings should continue. In terms of the market’s BOE outlook, the data should keep the current view intact with traders expecting roughly .5% of easing from the bank vs .1% of easing from the Fed. As such, GBPUSD has room to move higher this week, particularly if tomorrow’s US CPI data comes in below forecasts.
Technical Views
GBPUSD
The rally has stalled for now into the bull channel highs with price since reversing back under the 1.3163 level. While above the 1.30 level and bull channel lows, however, the focus remains on further upside. Below there, however, 1.2832 will be the next support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.