GBP/USD: Reality check to push sterling lower
GBP/USD has been on the back foot as weaker parts of economic indicators take priority. US Retail Sales, BoE speculation and coronavirus figures are of interest, FXStreet's analyst Yohay Elam reports.
Key quotes: "The UK unemployment rate remained at 3.9% in May – an excellent level in absolute terms and beating expectations once again. The Claimant Count Change also surprise with a drop of around 28,000, instead of rising. However, average earnings are now down 0.3% year over year, ending an era of pay rises. GBP/USD has been extending its losses following the publication, focusing on the negatives and the potential for disinflation." Read more...
GBP/USD: Bears gain ground toward 1.2535
GBP/USD is posting -0.35% losses to 1.2545 as Thursday's 4-hour chart is showing bears are gaining ground. Yohay Elam, an analyst at FXStreet, points out that initial support is seen just below the daily low at 1.2535.
Key quotes: "Momentum on the 4-hour chart has turned negative and GBP/USD dropped below the 50 Simple Moving Average. However, it continues trading above the100 and 200 SMAs." Read more...
UK's Sharma: Jobs data would have been worse without govt support
In an interview with BBC on Thursday, the UK Business Minister Alok Sharma commented on the latest labor market report released in the last hour.
Key quotes: "If we hadn't provided this support, we would be in a far worse position." "The cost of inaction would have been much greater than the cost of action."
GBP/USD reaction
GBP/USD is unfazed by the above comments, as it nurses losses around 1.2550. The upbeat UK jobs data failed to offer any respite to the GBP bulls, as the major fell as low as 1.2536 post-the release. Read more...
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