British Average Earnings Index is an inflation index which measures the change in the price of goods and services charged to businesses and labor. A reading which is higher than the market forecast is bullish for the pound. Update: UK unemployment falls to 6%, earnings rise – GBP/USD advances Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 8:30 GMT. Indicator Background Average Earnings Index is a leading indicator of consumer inflation, and an unexpected reading can affect the direction of GBP/USD. The indicator posted a gain of 0.6% in the previous release, just shy of the estimate of 0.7%. The forecast remains at 0.7% for the upcoming release. Sentiments and levels The markets are expecting interest rate hikes in 2015 in both the US and UK, so key releases could impact on the timing of such a move by the BoE and Federal Reserve. Much will depend on this week’s CPI and Claimant Count Change releases – if they meet expectations, the pound could hold its own against the US dollar.. So, the overall sentiment is neutral on GBP/USD towards this release. Technical levels, from top to bottom: 1.6250, 1.6131, 1.6006, 1.6823, 1.5909, and 1.5746. 5 Scenarios Within expectations: 0.5% to 0.9%. In this scenario, GBP/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 1.0% to 1.4%: A stronger reading than predicted could push the pair above one resistance line. Well above expectations: Above 1.4%: An unexpectedly sharp rise could push GBP/USD upwards, with a second line of resistance at risk. Below expectations: 0.0% to 0.4%: A lower than expected reading could pull the pair downwards, with one support level at risk. Well below expectations: Below 0.0%. A reading in negative territory could push the pair below a second support level. For more on the pound, see the GBP/USD forecast. To follow this event live: [do action=”calendar-event” eventid=”9c9ab1a0-852f-41e6-a562-a99db892aa96″/] Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next Canadian dollar sell off accelerates – at lowest since Yohay Elam 7 years British Average Earnings Index is an inflation index which measures the change in the price of goods and services charged to businesses and labor. A reading which is higher than the market forecast is bullish for the pound. Update: UK unemployment falls to 6%, earnings rise - GBP/USD advances Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 8:30 GMT. Indicator Background Average Earnings Index is a leading indicator of consumer inflation, and an unexpected reading can affect the direction of GBP/USD. The indicator posted a gain of 0.6% in the previous release, just… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
