GBPUSD bulls cross 1.1800 on mixed UK employment data

GBPUSD buyers pierce off the 1.1800 to renew intraday top surrounding 1.1810 despite mixed details of the UK’s latest employment report, published early Tuesday in London. In doing so, the Cable pair might have cheered the US Dollar’s sluggish move, as well as geopolitical concerns surrounding Britain.

UK’s Claimant Count Change increased to 3.3K versus -12.6K forecasts and 25.5K prior whereas the Unemployment Rate rose to 3.6% while surpassing the market consensus and prior readings of 3.5%.

Also read: UK: ILO Unemployment Rate rises to 3.6% in September vs. 3.5% expected

Other than the data, chatters that UK Prime Minister Rishi Sunak will unveil a plan to increase the national living wage and give 8 million households cost-of-living payments worth up to 1,100 pounds($1,292.61), per The Times, also favor the GBPUSD buyers. “Chancellor of the Exchequer Jeremy Hunt and Sunak will accept an official recommendation to increase the living wage from 9.50 pounds an hour to about 10.40 pounds an hour, nearly a 10% rise,” the news adds.

Elsewhere, hopes of smaller rate hikes from the US Federal Reserve (Fed), backed by the recent comments from the policymakers, also seem to have favored the GBPUSD bulls of late. That said, the Fed’s Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, Michael Barr mentioned that the inflation is too high. Previously, Vice-Chair Lael Brainard favored a 50 bps rate hike but also stated, “We have additional work to do.” Earlier on Monday, Federal Reserve Governor Christopher Waller also promoted the ideal of a 0.50% rate hike while also warning against the market’s perception of the pivot.

Against this backdrop, S&P 500 Futures prints 0.50% intraday gains near the monthly high but the US 10-year Treasury yields grind higher around 3.87%, which in turn challenges the US Dollar Index (DXY) recovery near 107.00 by the press time.

Moving on, GBPUSD traders should pay attention to the aforementioned risk catalysts for clear directions ahead of the US Producer Price Index (PPI) for October, expected at 8.3% YoY versus 8.5% prior. It should be noted that major attention will be given to Wednesday’s UK Consumer Price Index (CPI) for October and Thursday’s British Autumn Statement amid hopes of witnessing upbeat outcomes.

Technical analysis

GBPUSD buyers keep the reins unless the quote provides a daily closing below the 100-DMA support surrounding 1.1650. Alternatively, the pair’s recovery moves, however, need validation from the late August swing high of 1.1900 to keep the buyers on the table.