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.

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
EUR/USD
Bullish
Oil - US Crude
Bullish
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
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
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
USD/JPY
Bearish
More View more
Real Time News
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/O2i6DZLkIB
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.02% Silver: -0.02% Oil - US Crude: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8fnXlqvZEz
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.07% 🇨🇭CHF: 0.05% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.06% 🇦🇺AUD: -0.09% 🇳🇿NZD: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/T8ma15KmYS
  • RT @DanielGMoss: #JacindaArdern’s balancing act with China may fuel further gains for the trade-sensitive $NZD $AUDNZD Head and Shoulders…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.85%, while traders in US 500 are at opposite extremes with 73.24%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tUOYKl0cyo
  • Okay so what's China CPI today? Its changed like 3 times on Bloomberg
  • Since the stock market bottomed back in March, the S&P 500 has gone on to climb over 40%. Get your S&P500 market update from @FxWestwater here: https://t.co/Ff7iHAUObN https://t.co/bLO6xva4Fw
  • 🇦🇺 Investment Lending for Homes (MAY) Actual: -15.6% Previous: -4.2% https://www.dailyfx.com/economic-calendar#2020-07-09
  • 🇦🇺 Home Loans MoM (MAY) Actual: -10.2% Previous: -5.0% https://www.dailyfx.com/economic-calendar#2020-07-09
  • 🇨🇳 Inflation Rate MoM (JUN) Actual: -0.1% Expected: 0% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2020-07-09
GBP/USD Climbs as Jobs Data Fuels BoE Rate Hike Expectations

GBP/USD Climbs as Jobs Data Fuels BoE Rate Hike Expectations

2015-09-16 09:20:00
Christopher Vecchio, CFA, Oded Shimoni,
Share:

Talking Points:

- The British Pound gained 0.5% versus the US Dollar after today’s UK labor data.

- The UK unemployment rate unexpectedly fell to 5.5%.

- Average Earnings Index rose by 2.9%.

The British Pound gained half of one percent versus its US counterpart after today's UK employment data, providing more evidence that the British labor market is in good health. The unemployment rate unexpectedly fell to 5.5% in July, below the 5.6% expected, with the country adding 42K jobs, subsequently raising the number of people employed to 31.1 million.

While economists were expecting the Jobless Claims to drop by -5.0K in August, the actual figure came in below the forecast with a rise of +1.2K (the higher the claims figure, the worse shape the labor market is in). July's average earnings index rose by +2.9%, above the as expected 2.5%. In aggregate, today’s data paints a positive picture for the UK labor market.

Last week, the Bank of England's Monetary Policy Committee voted to keep rates on hold, while commenting that slowing employment data might imply that labor demand had plateaued, which could keep pay growth on hold. Data today coming in above forecasts indicate an improvement in the labor market that could help the BoE achieve its +2% medium-term inflation target.

UK Gilts yields climbed after the data were released, suggesting that traders were taking positions favorable to a more hawkish BoE sooner than previously anticipated, which in turn helped support the British Pound and GBPUSD specifically.

GBPUSD 15-minute Chart: September 15 to 16, 2015

GBP/USD Climbs as Jobs Data Fuels BoE Rate Hike Expectations

Ahead of the data, GBPUSD was trading just below $1.5345, having come off of the session lows of $1.5330. After the data, on the back of rising Gilt yields, GBPUSD climbed as high as $1.5417, and was trading at $1.5409 at the time this report was written.

Read more: US Dollar May Find This Week’s FOMC Meeting Disappointing

--- Written by Christopher Vecchio, Currency Strategist and Oded Shimoni, DailyFX Research

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES

News & Analysis at your fingertips.