GBP/USD staying afloat ahead of unemployment, earnings data

GBP/USD refusing to continue Dollar slide.
Dollar advancing on rising bond yields.
UK Employment, Earnings slated for 09:30.

Joshua Gibson FXStreet

GBP/USD traded sideways on Tuesday with the Sterling staunchly refusing to give up further ground to the US Dollar. The pair is down slightly ahead of the European market session, currently trading into the sub-1.3990 region.

It's a data-loaded Wednesday for the GBP/USD today with Average Earnings growth, ILO 3-month Unemployment Rate, Claimant Count, and Public Sector Net Borrowing, all dropping at 09:30 GMT. The primary focus will be on ILO Unemployment and Average Earnings, with market forecasters anticipating both key indicators to hold at their previous readings of 4.3% for ILO Unemployment and 2.5% in Average Earnings. Analysts at Westpac are bucking the forecast trend, calling for a 2.6% increase in year-on-year figures for Average Earnings, and are also anticipating a healthy beat in the employment figures as well.

The Greenback has been buoyed higher by rising bond yields, but the Sterling continues to fight back as positive data continues to boost the UK's economic outlook and the Bank of England (BoE) prepares to begin lifting interest rates, with many participants expecting the first rate lift in May. The GBP strength may get challenged by US data later in the day, with the Markit PMI Index at 14:45 and FOMC Minutes at 19:00.

GBP/USD Technicals

The pair has halted the latest Dollar-based slide and the price is currently consolidating on support from the 8-day EMA. GBP/USD recently rebounded from support at the 34 EMA near 1.3831 but is still trading below the recent high of 1.4344 made in January. The pair is currently straddled by support and resistance at 1.3764 and 1.4142 respectively, while a further push lower will find support at 1.3655 and buyers will face pressure from 1.4259 and the previous high of 1.4344.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.