When are the UK jobs and how could they affect GBP/USD?
UK Jobs report overview
The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to February, are expected to accelerate 3.5%, while ex-bonuses, the wages are expected to rise 3.4% in the reported period.
The number of people seeking jobless benefits is seen increasing by 20k in the three months to March versus 27k additions booked last. The ILO unemployment rate is expected to hold steady at 3.9% during the period.
How could they affect GBP/USD?
A disappointment on the UK’s wages could trigger a fresh round of selling in the pound. The rates could test the 1.3071 (10-DMA). A break below the last, a test of 1.3050/30 (intermittent lows) remains inevitable.
On a positive surprise, the GBP/USD pair could extend the recovery and test 1.3134 (50-DMA), above which the immediate resistances lie at 1.3150 (psychological levels) and 1.3191 (Apr 4 high).
“It would take a genuinely miserable jobs report to weigh on the pound. With Brexit temporarily out of the way and an improved market mood, the scales seem tilted in favor of GBP/USD. So, an OK report has room to lift GBP/USD.,” Yohay Elam, Senior Analyst at FXStreet explains.
Key Notes
UK: Unemployment rate likely to hold steady at 3.9% - TDS
GBP/USD Forecast: Placed at a critical juncture ahead of UK jobs data
GBP futures: scope for extra gains
About UK jobs
The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
