How Does UK Jobs Report Impact GBPUSD?


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).

Disclaimer

This article about How Does UK Jobs Report Impact GBPUSD? was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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