UK Jobs preview: What to expect in GBP/USD?

By FXStreet FXStreet (Mumbai) – The GBP/USD pair stalled its recovery mode just shy of 1.53 barrier and is now seen gathering pace to pierce through the last at one go. The cable recovered nearly 1 big figure from the UK CPI-led slump and now awaits the UK labour market report for further direction. While broad based US dollar weakness on widespread risk-aversion also keeps the major underpinned.

Looking ahead, the UK jobs data due to be published at 08.30GMT, is likely to be the major market driver for GBP/USD and the GBP crosses this session.

Tightening labour market and rising wages to prompt BOE rate-hike?

The ONS will release the UK labor market figures for August, with markets expecting the jobless rate to have remained unchanged at 5.5%. While the number of new unemployed claiming benefits is expected to decline by 2,100.

Average weekly earnings, excluding bonuses, are seen rising 3% in the quarter to August, from 2.9% seen in July, while earnings with bonuses are forecast to grow 3.1% after 2.9% previously.

Upbeat figures will refuel speculations surrounding the Bank of England (BOE) rate-hike and could prompt BOE Governor Carney to raise rates in Q1 2016, as he sees tightening labour market conditions and …read more

Source:: FX Street