How Does UK Jobs Report Impact GBPUSD? When will the report be released?
11 September, OctaFX – The UK labor market report is expected to show that the number of people seeking jobless benefits increased by 10.0k in the three months to August, compared to a gain of 6.2k seen in the three months to July. The ILO unemployment rate is expected to hold steady at 4.0% during the period.
Average weekly earnings, including bonuses, in the three months to July, are expected to remain unchanged at 2.4%, while ex-bonuses also, the wages are seen rising to 2.8% in the reported period versus 2.7% last.
How Does UK Jobs Report Impact GBPUSD?
A bigger-than-expected growth in the UK’s wages could add legs to the ongoing bullish momentum seen around the pound following the latest Brexit deal-related headlines. The rates could test 1.3088 (classic R1/ Fib R2) on upbeat numbers, in a bid to regain the 1.31 handle. A break above the last, a test of the 100-DMA at 1.3125 remains inevitable.
On a disappointing result, the GBP/USD pair could drop back to the 1.3000 level, below which the immediate supports lie at 1.2974 (5-DMA) and 1.2955 (50-DMA).
Yohay Elam, Analyst at FXStreet explains,
the Technical Confluences Indicator shows that the pair is currently mired in a dense area of technical levels. The 1.3035-1.3048 area is the congestion of last week’s high, the Simple Moving Average 50-15m, the SMA 10-one-hour, the Bolinger Band 15m-Middle, the Pivot Point one-week Resistance 1, the BB 4h-Upper, the SMA 10-15m, the SMA 5-15m, the 4h-high, the BB 15m-Upper, and last month’s high.
Overcoming this zone opens the door to surging all the way to 1.3163 which is the meeting point of the Pivot Point one-day Resistance 2 and the PP one-week Resistance 2.”
About UK jobs
The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).
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