The GBP/USD pair is being bought – very carefully, but gradually: it looks like the British Pound is ready to reverse the trend.
On Wednesday, the British Pound is strengthening a bit against the American currency. The current quote for the GBP/USD pair is 1.4393. The Pound had been moving close to the downside border of the mid-term trading range for quite a long time, but now it’s moving upwards.
Today’s statistics indicated that according to ILo calculations the unemployment level in the UK in February was 5.1%, just as it was expected. In the components of the report we can see that the average salary countrywide in February increased by 1.8% over three months – it’s less than the predicted number of 2.3%. The number of jobless claims in March unexpectedly increased by 6.7 thousand against the predicted decrease by 11.3 thousand. This particular indicator was reducing gradually in the UK earlier. There was no more up-to-date information about the unemployment rate last month, but we may assume that this spurt of unemployment on the employment market may contribute to growth of the indicator up to 5.2-5.2%. This is not a very good sign for the British Pound.
So far, “anti-Dollar” sentiments are prevailing on the currency market, but the demand for the US Dollar may return at any moment. The Pound desperately needs a positive internal impulse to move to the area of 1.45. It would be difficult to sell from there.
At the same time, one can't fail to notice that the market feels very nervous after any comments about “Brexit” said aloud, about its monetary costs and other consequences. For some reason, very little is being said about advantages, because not for nothing has the idea of exiting the European Union appeared. Probably, one should focus on the purposes of this process once there are no other catalysts so far.
RoboForex Analytical Department
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