UK data impact on EUR/GBP and GBP/USD in OctaFX spotlight: First data is out Finally we’ve got the first piece of market moving reports out of the UK, and the data painted an interesting picture with Claimant Count Change worse than expected at 33.6K vs -30.0K, Average Earnings excluding Bonus lower at 0.6% vs 0.7%, and ILO Unemployment Rate at 6.4 as expected. The pound moved to 1.6792 right after the release, as the market practically lost the hope to see the pound rising and the BOE tightening. Most attention was paid to Earnings component, as the wage inflation could be the key factor to convince the MPC in rate hike urgency. Now the focus of the market turns to the BOE Quarterly report that may either drawn, or rescue the pound. EUR/GBP erases losses after UK employment data The EUR/GBP bounced and erased all previous daily losses in the blink of an eye following the release of disappointing UK labor data. UK labor data showed the economy added 167,000 jobs in the 3 months to June, versus expectation of 270,000. However, the unemployment rate has dropped to 6.4% from 6.5% as people abandoned the labor force. The EUR/GBP jumped from a low of 0.7932 to the 0.7950 area, erasing intraday losses. At time of writing, the pair is trading at 0.7945, little changed on the day. GBP/USD slid below 1.68 on UK data, but not ready to go lower FXStreet (Moscow) - GBP/USD traded just above 1.6820 before the British Labor data release, moving to 1.6792 low post data. Todays central pivot point can be found at 1.6795, with support below at 1.6774, 1.6735 and 1.6714 with resistance above at 1.6834, 1.6855, and 1.6894. Hourly RSI is bullish at 70, while hourly Moving Averages are largely bullish, with the 200SMA bearish at 1.6829, and the daily 20EMA bearish at 1.6910.
Posted on: Wed, 13 Aug 2014 09:15:11 +0000
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