Pound has hit a wall

18 May, 2017

Pound has hit a wall

The pound has made a late recovery today in the European trading session after jobless numbers hit the market above expectations.

The official unemployment rate released today from the UK came in at 4.6 percent, slightly above analysts’ expectations for a figure of 4.7 percent which was slightly undermined by the slower wage growth which hit the market at 2.4 percent.

Many believe though, that it was overall a good result, and the UK is beginning to rebound after the shock of Brexit and getting on with business,

"Reassuringly for income growth prospects, however, employment picked up further and posted a much larger-than-expected increase over the quarter," say Lloyds Bank

"Overall, the data suggest that any remaining slack continues to be absorbed." they added.

Although the pound has recovered in recent weeks it has reached strong resistance at the $1.30 mark against its US counterpart and not everybody thinks that the Brexit worries are over and it’s going to take something special for a clean break through,

“The main problem right now is the pound desperately, technically wants to test above $1.30 in the dollar. But it’s a real battle between the bulls, the bears, medium and long-term traders as to where the value is going to be in the future,” said Steve Ruffley, chief market strategist at InterTrader.

Source link   Presented by FIBO Group

GBP/USD targets 1.3850 in short-term

Cable keeps the neutral stance unchanged so far and risks a visit to the mid-1.3800s in the near term, suggested FX Strategists at UOB Group...

Recovery remains capped near 1.3960

Hits the lowest in five-weeks at 1.3918, as USD buying picks-up pace. Brexit and geopolitical tensions add to the downside. The GBP/USD pair is seen trying...

BOE Governor Carney Sends GBP Tumbling

Bank of England Governor, Mark Carney, was interviewed by the BBC yesterday, where he made the comment that he didn't want to get too focused on the precise...

GBP upside pressure alleviated

FX Strategists at UOB Group remain neutral on Cable, adding that a break below 1.4080 should indicate that the upside pressure has eased...

Pound retreats, seen as temporary

The British pound has taken a tumble in today’s trading session after the release of Markit services PMI threw into doubt the overall state of the UK economy...

Pound surges, further gains expected

The British pound has jumped back through the $1.40 mark against its US counterpart after a transition deal between the UK and the EU was...

GBP futures: upside momentum missing

Cable's positive performance on Thursday has been accompanied with a drop in volume and muted activity from open interest, which has somehow...

Sterling stumbles into March

Market optimism over a soft Brexit outcome sharply deteriorated on Wednesday, after the European Union published a draft withdrawal...

GBP/USD drops to fresh lows near 1.3840

Cable tests lows near the 1.3840 region on EU’s Barnier. The Sterling loses further ground on EU Brexit draft. Manufacturing PMI and speeches by Carney...