In England today was January employment day. Let’s look at employment-based data closely followed by the BOE (the Bank of England).
- The unemployment rate was in line with the 4.8% expectation in January.
- The average earnings index, which was expected to increase by 2.8% in January, was up 2.6%, failing to meet expectations.
- It is worth noting that there is a decrease of 42 thousand 400 persons, which is far below the expectation of an increase of 1100 persons in the application for the benefit of unemployment.
Despite the fact that the data are generally in line with expectations, the BOE’s close watch on the average earnings index has put pressure on the Pound.
When we look at the GBPUSD, we see that the sellers’ curiosity in recent days continues. Today, the decline from the 1.2470 gains a new dimension by passing the 100-day average (1.2430) and 50-day average (1.2413) levels. If these levels are maintained, the decline may continue down to 1.2345 – 1.2260 – 1.2200. Above, the resistance levels that buyers will encounter are 1.2430 – 1.2485 – 1.2530.