GBP/USD lost support after a jump was reported in the unemployment rate. It remains vulnerable to dollar strength as well. Update.
Britain’s unemployment rate unexpected jumped from 7.7% to 7.9% in October. This is a retreat to previous levels – the drop to 7.7% wasn’t expected two months ago. The more fresh figure, Claimant Count Change, which reflects the number of people claiming for unemployment benefits in November, dropped by 1200, slightly worse than a drop of 2700 that was expected.
GBP/USD is now trading under 1.57, dropping from 1.5760 earlier. The pair lost the 1.5720 support line that held it for a week. Much stronger support appears at 1.5650. It’s followed by 1.5470 and 1.5350. Looking up, fresh optimism could send cable towards 1.5840, followed by 1.60.
For more technical levels and analysis, see the GBP/USD forecast.
The dollar is strengthening also against the Euro today, “thanks” to warning by Moody’s about downgrading Spain.
Later in Britain, CBI Realized Sales are expected to show a small decrease from 43 to 38 points. And later in the US, we have CPI, the Empire State Manufacturing Index, Industrial Production and the Capacity Utilization Rate.
The US dollar is strongly affected by moves in US treasury bonds, that have been rising and touched a yield of 3.50% yesterday (10 year notes).
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