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 December, are expected to rise by 3.0%, while ex-bonuses, the wages are also seen rising by 3.3% in the reported period.
The number of people seeking jobless benefits is likely to increase by 22.6k in January vs. +14.9k seen last. The ILO unemployment rate is expected to remain unchanged at 3.8% during the period.
How could they affect GBP/USD?
Haresh Menghani, Analyst at FXStreet explains, “the pair now seems vulnerable to accelerate the fall further towards the 1.2950-45 support zone en-route 100-day SMA, around the 1.2925 region. Failure to defend the mentioned support now seems to prompt some aggressive technical selling and pave the way for the resumption of the pair’s prior depreciating move. On the flip side, the 1.3040-50 region now seems to act as immediate resistance and is closely followed by the 1.3065 supply zone (50-DMA). A convincing breakthrough the latter now seems to assist the pair to aim towards reclaiming the 1.3100 round-figure mark.”
At the time of writing, the GBP sellers are trying hard to extend the break below the 1.3000 level, having faced rejection once again above 1.3050 on Monday. The spot is last seen trading around 1.3000, almost unchanged on the day.
Key Notes
UK Lectures EU on the “Whole Point” of Brexit
UK employment preview: Three reasons why GBP/USD could bounce even if wage growth slows
GBP/USD extends losses to sub-1.3000 area, UK unemployment rate in focus
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).
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