GBP Steady before Unemployment Numbers
The pound made small inroads against most currencies yesterday. Unemployment numbers for September are released at 09:30 with expectation for an improvement to 5.9% down from 6% the previous month. These numbers also include the accompanying wage price data which in particular are being closely monitored by the Bank of England as a key factor as to when interest rates will rise. It should be a volatile morning.
The Bank of England’s quarterly inflation report which goes into detailed economic analysis as well as projections for the next two years is released an hour later. The last report in August saw interest rate expectations put back and which resulted in a huge crash for the pound immediately after. Considering there have been some mixed signals coming out of the UK of late then there is more risk to the downside with these releases which pose a negative risk for the pound. Buyers may wish to look at securing before the data this morning should things point to interest rates staying low for an extended period. A new level of support may be tested at 1.2450.
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