Search ForexCrunch
  • Cable advance to the area of daily peaks in the 1.3265/70 band.
  • UK’s Claimant Count Change came in at 7.8K in June.
  • Carney warns over Brexit potential risks, says it’s too early to assess white paper.

The Sterling is extending the upbeat mood in the first half of the week and is now lifting GBP/USD to the area of daily highs near 1.3270.

GBP/USD bid after data

Cable gained extra ground after the publication of the UK’s labour market report. In fact, Claimant Count Change rose by 7.8K contracts (vs. 2.3K expected) and the Employment Change rose below forecasts by 137.0K jobs on a 3M/3M basis.

In addition, the jobless rate stayed put at 4.2%, matching prior surveys.

Furthermore, at today’s BoE’s Financial Stability Report, Governor M.Carney warned over the Brexit potential risks although he deemed premature to judge the white paper.

The recent up move in the pair has been almost exclusively on the back of renewed USD-weakness amidst lack of headlines from the Brexit talks, which are expected to drive Cable’s sentiment for the next months.

Speaking about the buck, Chief J.Powell is expected to testify before the Senate Banking Committee later today.

GBP/USD levels to consider

As of writing, the pair is gaining 0.21% at 1.3266 and a break above 1.3293 (high Jul.16) would open the door to 1.3340 (55-day sma) and then 1.3364 (high Jul.9). On the other hand, immediate contention emerges at 1.3218 (21-day sma) followed by1.3180 (low Jul.13) and finally 1.3050 (2018 low Jun.29).