UK: Mixed labour market data – TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that the UK’s September labour market data was mixed today, with the unemployment rate slipping back down to 3.8% (mkt 3.9%), but wage growth a bit weaker at 3.6% y/y (mkt 3.8%).

Key Quotes

“There are still signs of weakness ahead though, with vacancies posting their biggest y/y fall in a decade. The labour market data is very slow moving since it's a 3m MA, so today's figures were for the July-Sept period. (Whereas we already have US employment data for October.)”

“So while other more timely survey data suggest that the unemployment rate is likely to start trending a bit higher over the next several months, it will take a while for that trend to be clear in the official labour market report.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.