UK jobless claims jump by 9.8K – GBP/USD suffers
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UK jobless claims jump by 9.8K – GBP/USD suffers

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:


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.