When are the UK jobs reports and how could they affect GBPUSD pair? Gain insight into the following analysis.
April 16, GKFX – The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to February, are expected to accelerate 3.5%, while ex-bonuses, the wages are expected to rise 3.4% in the reported period.
The number of people seeking jobless benefits is seen increasing by 20k in the three months to March versus 27k additions booked last. The ILO unemployment rate is expected to hold steady at 3.9% during the period.
How could they affect GBPUSD?
A disappointment on the UK’s wages could trigger a fresh round of selling in the pound. The rates could test the 1.3071 (10-DMA). A break below the last, a test of 1.3050/30 (intermittent lows) remains inevitable.
On a positive surprise, the GBPUSD pair could extend the recovery and test 1.3134 (50-DMA), above which the immediate resistances lie at 1.3150 (psychological levels) and 1.3191 (Apr 4 high).
“It would take a genuinely miserable jobs report to weigh on the pound. With Brexit temporarily out of the way and an improved market mood, the scales seem tilted in favor of GBPUSD. So, an OK report has room to lift GBPUSD.,” Yohay Elam, Senior Analyst at FXStreet explains.
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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