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UK Unemployment In Line, Wage Growth Adds Inflationary Pressure on BoE

UK Unemployment In Line, Wage Growth Adds Inflationary Pressure on BoE

Warren Venketas, Analyst

GBP/USD ANALYSIS

  • UK Unemployment ACT: 4.1%, EST: 4.1%; Avg Earnings ACT: 4.3%, EST: 3.8%
  • Cable ticks higher.
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AVERAGE EARNINGS BEATS FORECASTS, GBP/USD TICKS HIGHER

While UK unemployment for the December period printed as expected (4.1%), the big news from the release centered around wage growth (4.3%). Higher growth in wages adds to tightening expectations from the Bank of England (BoE), reflective in the post-release upside price action on sterling.

ECONOMIC CALENDAR

GBPUSD economic calendar

Source: DailyFX economic calendar

Markets remain apprehensive with geopolitical tensions mounting as well as further guidance via tomorrow’s UK inflation and FOMC minutes events.

GBP/USd economic calendar

Source: DailyFX economic calendar

GBP/USD TECHNICAL ANALYSIS

GBP/USD DAILY CHART

GBPUSD daily chart

Chart prepared by Warren Venketas, IG

Choppy trading on the GBP/USD pair of recent has echoed the uncertain global environment particularly around Russia/Ukraine tensions. The congestion is likely to stay until more concrete information is released on the current situation.

Key resistance levels:

  • 1.3579

Key support levels:

  • 1.3500
  • 1.3300

Contact and follow Warren on Twitter: @WVenketas

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

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