GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.65% against the USD and closed at 1.5995, after the UK’s ILO unemployment rate dropped to 6.0%, marking its lowest level since October 2008, for the three months to August, beating market expectations of a fall to a level of 6.1% and following a level of 6.2% for the three months to May.
In other economic data, employment in the nation climbed by 46.0 K in August, compared to an advance of 74.0 K jobs in the May-July period. Markets were expecting the economy to add 30.0 K jobs. Meanwhile, claimant count rate eased to 2.8% in September, in line with market expectations, while average earnings including bonus rose 0.7% on an annual basis in the June-August period, at par with market estimates.
Separately, the BoE’s MPC member, Martin Weale, stated that he will continue to vote for immediate interest rate hike and opined that the central bank should ignore the recent dip in inflation while setting interest rate policy and place greater weight on the speed of the economic recovery and falling unemployment.
In the Asian session, at GMT0300, the pair is trading at 1.5994, with the GBP trading a tad lower from yesterday’s close.
The pair is expected to find support at 1.5889, and a fall through could take it to the next support level of 1.5783. The pair is expected to find its first resistance at 1.6085, and a rise through could take it to the next resistance level of 1.6175.
Amid no economic releases from the UK today, investor sentiments would be governed by global macroeconomic news.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
