Mixed figures from the UK. The good news comes from September: the unemployment rate dropped to 4.8% from 4.9%. Wages are OK, with average earnings rising remaining at 2.3% and excluding bonuses, at 2.4%.
However, the Claimant Count Change does not look good: they rose by 9.8K in October, much more than 2K expected. In addition, the data for September has been revised to a rise of 5.6K from 0.7K. This implies worsening labor conditions later on.
GBP/USD is slightly leaning to the downside but is not going anywhere fast.
The UK was expected to report a rise of 2K in the number of jobless claims in October, the Claimant Count Change, after 0.7K in September. The unemployment rate for September was predicted remain at 4.9%. Average hourly earnings were projected to accelerate to an annual rise to 2.4% from 2.3% in August and the same goes for wages excluding bonuses.
GBP/USD traded around 1.2460, relatively steady. High resistance awaits at 1.2560 and low support at 1.2320.
Here is our preview: trading the UK jobless claims with GBP/USD.
The British pound stood out by resisting the dollar rally. There are some factors playing in favor of sterling: an OK economy, the court’s ruling regarding Brexit and the BOE’s turn to a neutral stance, with no rate cuts on the horizon.
Here are the recent moves reflected on the pound/dollar chart: