GBP/USD Holding Well After the Soft UK Employment Data
The GBP/USD has been trading sideways for the last few days, after the retreat that we saw last week, primarily holding within a narrow range between 1.25 and 1.26. This morning we had the employment report from the UK, although the price action has been following the USD, so traders are awaiting today’s inflation report from the US and the FOMC meeting which comes tomorrow.
The US NFP numbers which were released last week gave the USD a boost, as they showed some decent figures, but we did not see a followthrough yesterday, so most major forex pairs traded in a tight range, apart from USD/JPY which surged 100 pips higher. GBP/USD has been trading at the 200 SMA (purple) in the last few days which is acting as support on the daily chart. Although, we might see a break today in case of a strong CPI number, or if that fails, tomorrow the price will definitely move one way or another after the FOMC decision.
The Bank of England (BoE) meeting is scheduled for Thursday and it is widely projected to keep its interest rate at 5.25% for the foreseeable future. Market expectations indicate that the Bank of England cutting interest rates by a quarter point in Q2 of next year, which has been keeping the GBP soft as well.
UK October Employment Report
- November payrolls change -12k vs 33k prior
- Prior 33k; revised to 39k
- October ILO unemployment rate 4.2% vs 4.2% expected
- Prior 4.2%
- October employment change 50k
- Prior 54k
- October average weekly earnings +7.2% vs +7.7% 3m/y expected
- Prior +7.9%; revised to +8.0%
- October average weekly earnings (ex bonus) +7.3% vs +7.4% 3m/y expected
- Prior +7.7%; revised to +7.8%
GBP/USD Live Chart
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