After a recent drawdown, GBPUSD is consolidating; the Pound badly needs support.
The British Pound stopped its decline against the USD in favour of consolidation. The current quote for the instrument is 1.3611.
The factor that supported the Pound earlier, expectations of a possible rate hike soon by the Bank of England, is no longer effective. It seems to have been “beaten” by the Fed’s “hawkish” policy.
The statistics published yesterday were rather mixed and didn’t offer the Pound the support it hoped for. The Unemployment Rate in the United Kingdom dropped to 4.1% in November after being 4.2% the month before. That’s good news. The Average Earnings Index added 4.2% 3m/y after expanding by 4.9% 3m/y over the previous period. The slowdown in the latter indicator means that the British labour market has enough jobs and workplaces.
The Claimant Count Change showed -43.3K in December after being -95.1K in November (revised data) and against the expected reading of -38.6K. These readings match those in the unemployment report.
Later today, the UK will release a lot of data on prices for December, such as the CPI, the Core CPI, the RPI, the HPI, and the PPI Input/Output.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.