Mixed figures from the UK. The good news comes from September: the unemployment rate dropped to 4.8% from 4.9%. Wages are OK, with average earnings rising remaining at 2.3% and excluding bonuses, at 2.4%.
However, the Claimant Count Change does not look good: they rose by 9.8K in October, much more than 2K expected. In addition, the data for September has been revised to a rise of 5.6K from 0.7K. This implies worsening labor conditions later on.
GBP/USD is slightly leaning to the downside but is not going anywhere fast.
The UK was expected to report a rise of 2K in the number of jobless claims in October, the Claimant Count Change, after 0.7K in September. The unemployment rate for September was predicted remain at 4.9%. Average hourly earnings were projected to accelerate to an annual rise to 2.4% from 2.3% in August and the same goes for wages excluding bonuses.
GBP/USD traded around 1.2460, relatively steady. High resistance awaits at 1.2560 and low support at 1.2320.
The British pound stood out by resisting the dollar rally. There are some factors playing in favor of sterling: an OK economy, the court’s ruling regarding Brexit and the BOE’s turn to a neutral stance, with no rate cuts on the horizon.
Here are the recent moves reflected on the pound/dollar chart:
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