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GBP/USD – Pound Stable Ahead of UK Job Data

GBP/USD is calm on Tuesday, as the pair trades just above the 1.68 line the North American session. On the release front, US JOLTS Jobs Openings improved last month, but fell short of expectations. There are no British releases on Tuesday. However, we’ll get a look at key employment numbers on Wednesday, with the release of British Claimant Count Change and the unemployment rate.

In the US, JOLTS Job Openings improved to 4.67 million, its third consecutive gain from the previous release. However, this fell short of expectations, as the estimate stood at 4.74 million. Employment indicators are under the market microscope, as the strength of the labor market is one of the most important factors influencing the Federal Reserve regarding the timing of an interest rate hike. A rate increase is expected by mid-2015, but stronger economic data, especially on the employment front, could hasten a move by the Fed.

The markets are keeping a close eye on upcoming UK employment numbers. Similar to the situation in the US, there is speculation about a rate hike, and improving job data will add pressure to the BOE to make a move sooner rather than later. As well, Claimant Count Change and the unemployment rate are market movers, so any surprises could quickly affect the movement of GBP/USD. The markets are expecting strong showings from both indicators.


GBP/USD for Tuesday, August 12, 2014

GBP/USD August 12 at 15:40 GMT

GBP/USD 1.6804 H: 1.6810 L: 1.6757


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.6484 1.6565 1.6700 1.6825 1.6920 1.7000


Further levels in both directions:


OANDA’s Open Positions Ratio

GBP/USD is almost unchanged in Tuesday trade. This is not consistent with the movement of the pair, as the pound has posted small gains. The ratio has a small majority of long positions, indicative of slight trader bias towards the pound moving higher.


GBP/USD Fundamentals

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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