The GBP/USD Pair Falls to 1.2900 before UK Employment Report

09:03, 19 February 2019

The British Pound (GBP) fell to 1.2900 against the US Dollar before the European sessions that will be held on Tuesday.

Image: GBP/USD pair. 

The British Pound (GBP) fell to 1.2900 against the US Dollar before the European sessions that will be held on Tuesday. 

The pair recently declined to 1.2925 to the day’s low after news that seven politicians quit opposition Labour Party and the UK manufacturers warn of ‘catastrophic’ no-deal Brexit, as revealed by the survey concerning Make UK, the country’s main manufacturing association.

December’s Unemployment Rate Could Be Another Turning Point for the GBP/USD


Pound traders will keep their eyes on the December month unemployment rate and average earnings index 3m/y, coupled with claimant count change for January.

Monthly details of the UK employment report will be key to determine near-term GBP/USD moves.

The forecasts made by analysts suggest no change in December month unemployment rate of 4.0%, while average earnings including bonus (3Mo/Yr) are expected to increase to 3.5% from 3.4% during the same month. Also, the January month claimant count change could soften to 2.4K from 20.8K.

Theresa May Is Still Struggling with the Brexit Deal, While Trade Negotiations Between U.S. and China Continue

 

Image: UK PM Theresa May.

It should also be noted that the UK PM Theresa May is on EU round for her last ditched efforts to convince EU leaders for Brexit proposal as she is determined to put the progress on parliament on February 26.

On the other hand, the US markets will be open after the President’s Day holiday on Monday.

Investors will be focusing on the US-China trade developments as White House delegates returned home after Beijing talks on Friday. 

The committee including few top-notch decision-makers, namely the US Trade Representative Lighthizer and the Treasury Sec. Mnuchin, will discuss what should be needed to push China further towards a deal before the Chinese Vice Premier Liu’s arrival in Washington on February 21st to continue the trade negotiations.

While likely improvement in average earnings and soft claimant change may help the GBP recover some of its latest losses, uncertainty surrounding Brexit can continue challenging the Pound buyers, analysts believe. 

Sources: Reuters.com, Bloomberg.com, Investing.com, BusinessInsider.com.

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