News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • ECB's Kazaks - The 2% price target will not be met in the medium term - Inflation outlook likely to be revised higher
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/fs5IRP7MJy
  • ECB's De Cos says conclusion of FT report is incompatible with ECB guidance $EUR
  • 💶 Inflation Rate YoY Final (AUG) Actual: 3% Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Inflation Rate MoM Final (AUG) Actual: 0.4% Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Core Inflation Rate YoY Final (AUG) Actual: 1.6% Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate MoM Final (AUG) due at 09:00 GMT (15min) Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Core Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/zOjbAQzaP9
Pound Rallies as Unemployment Falls Closer to the BoE Threshold

Pound Rallies as Unemployment Falls Closer to the BoE Threshold

Benjamin Spier, Technical Strategist
  • UK jobless claims declines 32.6 thousand in August, more than expected
  • Unemployment falls closer to the BoE threshold in 3M period ending in July
  • Pound temporarily rallies above 1.5800

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Pound rallied on news that the BoE may be a step closer to unwinding stimulus efforts, as the fall in UK jobless claims beat expectations and the unemployment rate fell to an eight month low.

UK jobless claims declined by 32.6 thousand, beating expectations for a 21 thousand decline in the number of people claiming unemployment benefits and continuing the 36.3 thousand decline in July, which was revised lower today. The UK Office of National Statistics also reported that the unemployment claimant count rate fell to a new 4 year low of 4.2%, down from 4.3% in July.

Furthermore, the ILO unemployment rate for the three months ending in July fell to an eight month low of 7.7%. Over the same period, payrolls rose by a more than expected 80 thousand, and average weekly earnings rose by 1.1%, less than expectations for a 1.3% rise.

The unemployment rate shifted into focus for Pound traders last month, when the Bank of England announced that it will only raise interest rates once the unemployment rate has fallen back to 7.0%, with an inflation clause. As explained earlier by Currency Strategist Ilya Spivak, the BoE forecasted that unemployment will remain above 7% until Q3 of 2016, so recently improved jobs numbers may send the unemployment rate lower at a faster pace than the central bank expected.

That is why the Pound finished a 90 pip rally against the US Dollar following the release, although nearly half of that was soon pared as Cablefell back below 1.5800. A recently broken declining trend line from February may now provide support around 1.5689. A rising trend line from July may provide resistance around 1.5884.

New to Forex? Watch this video

GBPUSD Daily: September 11, 2013

Pound_Rallies_as_Unemployment_Falls_Closer_to_the_BoE_Threshold_body_gbpusd.png, Pound Rallies as Unemployment Falls Closer to the BoE Threshold

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES