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GBP/USD – UK job numbers disappoint, send pound lower

The British pound has posted considerable losses in the Tuesday session. In North American trade, the pair is trading at 1.3160, down 0.57% on the day. On the release front, British employment numbers disappointed the markets. Wage growth remained pegged at 2.5%, matching the estimate. Unemployment rolls expanded by 7.8 thousand, higher than the estimate of 2.3 thousand. There are no major U.S indicators. In the U.S, Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee.

After a soft first quarter, U.S retail sales reports have rebounded in the second quarter. Core retail sales were revised upwards to 0.8% in May, and the June gain of 0.5% edged above the forecast of 0.4%. Retail sales gained 0.4%, and were up an impressive 6.6% on an annualized basis. Consumer spending is a key driver of economic growth, and a tight labor markets and firming inflation are further indications that the economy is in excellent shape. The Fed is widely expected to raise rates again at the September meeting, with odds of a quarter-point hike at 87%, according to the CME Group.

The trade war between the U.S and China is raising concerns not just on the equity markets but at the Federal Reserve as well. On Friday, Dallas Fed President Robert Kaplan said he would have to downgrade his economic outlook for the economy if the tariff battle continues. Kaplan said that U.S tariffs on steel and aluminum imports had dampened capital expenditures plans and further trade tensions could lead to currency fluctuations and geopolitical instability.

  Commodities Weekly: Oil tumbles on supply/demand dynamics [1]

PM May faces Brexit battle in parliament on trade [2]

Monday blues or Dog days of summer [3]

 

GBP/USD Fundamentals

Tuesday (July 17)

*All release times are DST

*Key events are in bold

 

GBP/USD for Tuesday, July 17, 2018

GBP/USD July 13 at 10:40 DST

Open: 1.3235 High: 1.3269 Low: 1.3145 Close: 1.3160

 

GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.2852 1.2996 1.3088 1.3186 1.3263 1.3494

GBP/USD showed little movement in the Asian session. The pair posted considerable losses in European trade and is flat in North American trade

Further levels in both directions:

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 [7]

Market Analyst at OANDA [8]
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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