U.K. employment data

• Average earnings with bonuses (September), fact 3.0%, forecast 3.0%.
• Claimant count change  (Oct), fact 20.2K, forecast 4.3K.
• Unemployment rate (September), fact 4.1%,  forecast 4.0%.

The UK employment report was worse than expected, despite optimistic forecasts. The main negative factor in the report was the increase in the unemployment rate by 0.1% and an increase in the number of applications for benefits.

Fig. 1. The unemployment rate in the UK

The main negative factor for the British pound is the unemployment increase, confirmed by an increase in applications for benefits, which, in turn, will cause a decrease in demand for the British pound in conditions of continuing risks around the Brexit negotiations.

The GBP/USD pair  maintains a dowtrend despite the correction after a decline and is limited to resistance levels: 1.2930-50 and 1.2980. Support is located at levels: 1.2830 and 1.2800.

Fig. 2. GBP/USD chart. Current price – 1.2890

Read also: “Stock Indices: Asia-Pacific Region”

Hanzenko Anton

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