EUR/GBP Falls After UK Jobs Data
- UK unemployment subtracted to 3.7%
- Payer off bonus cools to 6.5% from 6.7%
- EUR/GBP fired for a 5th day
the pair EUR/GBP Forex fell for the fifth straight day as investors digest the latest UK jobs data and anticipate the European Central Bank’s meeting later in the week.
UK unemployment remained stable at 3.7%, defying expectations of a rise to 3.8%. Vacancies fell for the eighth straight, from 51,000 to 1,124 million. Bonus earnings increased from 6.5% to 6.7%.
Slowing wage growth and falling pole vacancies suggest labor market tensions may ease slightly. That said, wage growth was still well below inflation, showing that the cost of living crisis is still ongoing.
The Well of Being Easy announces an interest rate decision on Thursday and is expected to raise rates by 50 basis points, bringing the rate to 3.5%. in light of the SVB issues, investors are less convinced now that the ECB is raising rates further.
What is the forex future for the EUR/GBP pair?
The pair encountered resistance at 0.8920 and bounced lower, falling below the 50-day moving average and testing a multi-month uptrend line. The RSI suggests that there might be more downsides to be had.
EUR/GBP daily chart
Bears may look for a break below the 100-day moving average at 0.8767 to put 0.8720, the 2023 low, in the spotlight. A move below here exposes the 200-day moving average SMA.
On the other hand, if the defending bidders manage to support the uptrend line, the 50-day moving SMA at 0.8840 could be the next hurdle. A move up from 0.8920 is needed to create a higher high.
By Fiona Cincotta, FOREX.com » Official Site
Fiona has a deep understanding of market fundamentals gained from her 15 years of experience in the financial markets. It provides analysis and up-to-date information on financial markets, as well as economics and monetary policy in the UK, US, Europe and Asia. She is regularly quoted in the global financial press, she is named often quoted in the Financial Times, The Telegraph, Reuters and Bloomberg.
Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or solicitation to buy or sell forex cambio contracts or CFDs. Although the information contained in the document comes from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages which may result in a breach.