GBP/USD breaks above 1.3200 on UK jobs

Cable tested highs above 1.3200 on UK data.
UK’s Average Earnings rose 2.7% on a yearly basis.
Brexit remains the exclusive driver for Cable for the time being.

Pablo Piovano FXStreet

The buying interest is now picking up pace around the Sterling and is lifting GBP/USD back above the 1.3200 handle, or daily highs.

GBP/USD boosted by data, looks to Brexit

Cable picked up extra pace on Tuesday after UK’s Average Earnings inc. Bonus rose at an annualized 2.7%, surpassing initial estimates. In addition, the jobless rate stayed put at 4.0% in August.

Further data saw Claimant Count Change ticking higher by 18.5K, more than forecasted while the Employment Change dropped by 5.0K 3M/3M.

In the meantime, Brexit headlines remains poised to dominate the sentiment around the British Pound, with the Cabinet expected to meet today ahead of the EU’s Brexit working dinner tomorrow.

GBP/USD levels to consider

As of writing, the pair is gaining 0.36% at 1.3201 facing the next hurdle at 1.3258 (high Oct.12) seconded by 1.3299 (high Sep.20) and then 1.3364 (high Jul.9). On the downside, a breakdown of 1.3126 (10-day SMA) would open the door to 1.3119 (21-day SMA) and finally 1.2921 (low Oct.4).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD declines toward 1.3500 as markets turn risk-averse

GBP/USD comes under bearish pressure and declines toward 1.3500 on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data, combined with the risk-averse market atmosphere amid a re-escalation of tensions in the Middle East weigh on the pair.

EUR/USD retreats below 1.1600 on modest USD recovery

EUR/USD struggles to gain traction and trades below 1.1600 in the second half of the day on Tuesday, even after the data from the Eurozone and Germany highlighted improving economic sentiment in August. The US Dollar (USD) benefits from the risk-averse market atmosphere as tensions in Middle East remain high, making it difficult for the pair to turn north.

Gold sticks to losses below $4,400 as USD recovers further from two-month low

Gold remains depressed below the $4,400 mark through the first half of the European session, snapping a two-day winning streak amid a broadly firmer US Dollar. Inflation risks stemming from higher oil prices back the case for at least one interest rate hike by the US Federal Reserve in 2026.

Crypto Today: Bitcoin, Ethereum, XRP falter amid escalating US-Iran tensions

Cryptocurrency prices are broadly correcting on Tuesday, with Bitcoin edging lower toward $64,000. Ethereum shows weakness amid ongoing narrow-range consolidation, while Ripple trades below $1.00, weighed down by falling technical indicators.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.