English
GBPUSD bulls surpass 1.18 despite mixed employment statistics in the UK
After the mixed British employment report, GBPUSD reestablishes intraday highs near the 11-week high. The UK's Claimant Count Change was a pleasant surprise, although the Unemployment Rate rose. Against the backdrop of weak markets, the depreciation of the US dollar supports recovery efforts. Risk catalysts may occupy intraday traders before the US PPI.
GBPUSD buyers breach 1.1800 to resume intraday highs near 1.1810 despite mixed data of the UK's most recent jobs report, which was released early Tuesday morning in London. The Cable pair may have done so in response to the US Dollar's slow movement and geopolitical concerns surrounding Britain.
The Claimant Count Change for the United Kingdom grew to 3,300 against -12.6K projections and 25.5K before, while the Unemployment Rate jumped to 3.6%, exceeding the market consensus and previous readings of 3.5%.
In addition to the statistics, rumors that UK Prime Minister Rishi Sunak will announce a plan to enhance the national living wage and provide 8 million households cost-of-living payments of up to 1,100 pounds ($1,292.61) also benefit GBPUSD purchasers, according to The Times. The story adds that "Chancellor of the Exchequer Jeremy Hunt and Sunak will accept an official recommendation to enhance the living wage from 9.50 pounds per hour to around 10.40 pounds per hour, a roughly 10% increase."
Aside from this, recent statements from Fed policymakers appear to have bolstered expectations for lower rate hikes by the US Federal Reserve (Fed), which has also supported GBPUSD bulls. Michael Barr, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, stated that inflation is excessively high. Previously, Vice-Chair Lael Brainard supported a 50 basis point (bps) rate increase, but she also acknowledged, "We have extra work to do." Earlier on Monday, Federal Reserve Governor Christopher Waller advocated for a 0.50 percentage point rate hike and cautioned against the market's interpretation of the pivot.
S&P 500 Futures post intraday gains of 0.50% at the monthly high, whilst US 10-year Treasury yields grind higher around 3.87%, threatening the US Dollar Index's (DXY) recovery near 107.00 at press time.
GBPUSD traders should focus on the aforementioned risk catalysts for obvious direction ahead of the US Producer Price Index (PPI) for October, which is anticipated to be 8.3% YoY versus 8.5% before. Notable attention will be paid to the UK Consumer Price Index (CPI) for October on Wednesday and the British Autumn Statement on Thursday in anticipation of positive results.
Bonus rebate to help investors grow in the trading world!
