When are the UK jobs and how could they affect GBP/USD?

UK Jobs report overview

The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to October, are expected to rise by 3.4%, while ex-bonuses, the wages are also seen rising by 3.4% in the reported period.

The number of people seeking jobless benefits is likely to increase by 20.2k in November vs. +33k seen last. The ILO unemployment rate is expected to tick higher to 3.9% during the period.

How could they affect GBP/USD?

Valeria Bednarik, Chief Analyst at FXStreet explains, “The GBP/USD pair has fallen to 1.3235 during Asian trading hours, practically filling the post-election bullish gap. Still, a break below the mentioned daily low could result in a steady decline toward 1.3190 as a first bearish target, while below this last, an approach to 1.3100 is on the cards. The 1.3305 level, where the pair bottomed last Friday, is the immediate resistance and the level that the pair needs to clear to recover toward the 1.3360 price zone.”

At the time of writing, the Cable’s recovery from the Asian lows of 1.3235 faltered just shy of the 1.33 handle, as the bears fight back control ahead of the European open. The spot is last seen trading around 1.3265 region, down -0.47% on the day.

Key Notes

UK PM Johnson looks at big overhaul of the House of Lords - FT

UK: Unemployment rate to tick back up to 3.9% in October – TDS

There are a number of risks for GBP bulls to consider

About UK jobs

The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).