On Wednesday afternoon, the GBP/USD pair is trading downwards even in the context of good statistics on the labor market.
The British Pound has been very sensitive recently – even if the news are quite good, it weakens anyway. The GBP/USD pair has been losing weight for the third day in a row; the current quote for the instrument is 1.4112.
Today Great Britain published data on the employment market in the beginning of the year. The unemployment rate in January, as per calculations from ILo, was 5.1%, thus matching the forecasts. Average earnings over three months by January grew by 2.1% against the predicted number of 2%. The number of applications for unemployment compensation in February decreased by 18 thousand against the expected number of 9.1 thousand.
The data is quite good, there is no difference for the worse in comparison with the forecasts, and the number of applications is less, which is very positive. Nevertheless, the Pound is sinking due to the nervousness of the currency market expecting the results of the March meeting of the USA Federal Reserve System.
Tomorrow, on Thursday, the BoE will have its own meeting. The forecasts regarding the meeting results are quite conservative and cautious. The interest rate will remain the same, at 0.50% per annum, the asset buyout program, which reached its ceiling 2 and a half years ago, will also remain valid. The attention will be focused on the comments of the Great Britain’s monetary politicians in relation to the local inflation, numbers on consumer activity, and effects on the country from the ECB QE program.
RoboForex Analytical Department
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