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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • OPEC reportedly moves up oil production meeting to June 4 #OOTT
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.69%, while traders in US 500 are at opposite extremes with 75.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uuUtwe3YrJ
  • Technical Trade Levels: #Dollar, $EURUSD, $USDCAD, $AUDUSD, #Gold, #SPX and more! (Webinar Archive) - https://t.co/3UevjO8Lil
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 2.04% Gold: 0.55% Oil - US Crude: -1.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5jVWooiTee
  • GBP/USD IG Client Sentiment: Our data shows traders are now net-short GBP/USD for the first time since May 06, 2020 when GBP/USD traded near 1.23. A contrarian view of crowd sentiment points to GBP/USD strength. https://www.dailyfx.com/sentiment https://t.co/wyWpKN83H2
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.79% 🇨🇦CAD: 1.33% 🇳🇿NZD: 1.31% 🇪🇺EUR: 0.20% 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q2qAPkPXZi
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.29% Wall Street: 0.27% Germany 30: 0.08% FTSE 100: -0.00% France 40: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vHF9F2qb4Z
  • Happy Monday traders! What does the new month bring? Are we looking at positive sentiment but not much momentum❔ What are the market highlights heading into New York open? Find out from @DailyFX Chief Strategist, @JohnKicklighter 👇 https://t.co/xaHZXjZdZr
  • US Treasury Secretary Steven Mnuchin to hold call with G-7 finance ministers on Wednesday per his public schedule $DXY
  • Overlay that with google search terms for “protest” and “riots” and you see a similar uptick. Last time we saw a surge in these search terms was back in August 2019 and we saw a lot of volatility ensue shortly after. https://t.co/ZXAkgRWfAB
GBP/USD Climbs Higher on Strong Wage Data

GBP/USD Climbs Higher on Strong Wage Data

2015-02-18 10:15:00
George Meng,
Share:

Talking Points:

  • UK Average Weekly Earnings (3M/YoY)(DEC) 2.1%, Expected 1.7%, prior 1.8%
  • BOE sees CPI to rise “fairly sharply” after oil effect fades
  • BOE voted 9-0 to keep interest rate at 0.5%, 9-0 to keep APF unchanged

UK economic data released today indicated a much stronger UK labor market recovery, and positive sentiment for Sterling bulls soared in response. UK Jobless Claims Change (JAN) was at -38.6K, better than the surveyed result of -25.0K as less people claimed unemployment benefits. Employment change (3M/3M)(DEC) was up more than double the 50K anticipated, to be 103K out of unemployment, and ILO Unemployment Rate (3M)(DEC) beat expectations at 5.7% compared to the forecast of 5.8%. Indicating a further strengthening of the labor market, Average Weekly Earnings (3M/YoY)(DEC) rose by 2.1%, much higher than economist expectations of 1.7%, signalling that prospects of a near term rate hike may be back on the table for the Bank of England.

The accelerating growth in wages and employment prompted the market to send the GBP/USD up by more than 60 pips, reaching for Monday’s high of 1.5439. This comes also in response to Band of England’s view that CPI will be rising “fairly sharply” after oil effect fades. The BOE minutes released today reveal members voted 9-0 to keep interest rate unchanged at 0.5%, also 9-0 to keep the BOE’s Asset Purchase Facility intact. The overwhelming positivity on the UK labor market and the BOE’s confidence in a sharp rebound on inflation levels shake off fears of prolonged stagnation in asset price growth, and sparks the hope that the UK may increase benchmark interest rates sooner rather than later.

The market will be looking ahead for the US Federal Reserve’s January FOMC meeting minutes at 19:00 GMT. The release should provide a further boost to market confidence to take on more risk, if the Fed’s tone is in line with consensual expectation of strong US economic growth that can justify a normalisation in monetary policy. But the market has yet to see just how much the Fed is factoring in the growing uncertainty for Greece, the effect of the ever strengthening US Dollar, and the possibility of a premature rate hike that could shut down the US's miracle recovery in its tracks.

GBP/USD (5 Min Chart) - Created using Marketscope 2.0

GBP/USD Climbs Higher on Strong Wage Data

Get Real-Time Feedback on Your Trades with DailyFX on Demand!

Written by George Meng, any comments, suggestions, or feedback please email instructor@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.