The pound ignores lousy news, including labour market

Expert market comment from senior analyst Alex Kuptsikevich of the FxPro Analyst Team: The pound ignores lousy news, including labour market

FxPro | 838 dagar sedan

The pound ignores lousy news, including labour market

The UK labour market is deteriorating at an increasing rate. Data released this morning showed that jobless claims rose by 46.7k in April, following a 26.5k increase in March. Analysts had, on average, expected a rise of 31.2k.

The unemployment rate rose to 3.9% (the highest since January 2022) from a low of 3.5% in August. This turnaround in employment trends has yet to lead to significant wage pressures. Average weekly earnings in the three months to March were up 5.8% year-on-year total pay and 6.7% excluding bonuses. Although this is slightly below expectations, it is difficult to see a reversal of the weakening trend.

The juxtaposition of two trends - falling employment and rising wages - does not make things any easier for the Bank of England. On the one hand, increasing wages when inflation is already falling is a worrying signal, forcing a further tightening of policy. On the other hand, rising wages create the conditions for an inflationary spiral to take hold despite falling employment.

The GBPUSD reacted to the weak employment figures by falling 0.4% to 1.2465. However, the pair quickly digested the negativity and climbed out of the hole over the next few hours to reach 1.2545. Interestingly, the GBPUSD has rallied on relatively negative economic news this week. On Monday, the IMF said that the UK was the only G7 country facing a recession this year, but that didn't stop GBPUSD from gaining 0.7%. Too much negativity may be already in prices.

By the FxPro Analyst Team

The pound ignores lousy news, including labour market

Förordning: FCA (UK), SCB (The Bahamas)

Taggar: Analys GBPUSD

US Dollar Surges, Global Markets Await Key Inflation Data | 29th August 2025

The US Dollar extends gains, with DXY near 98.00 ahead of key PCE data. EUR/USD drifts to 1.1650 on weak eurozone growth, while USD/JPY hovers below 147.00 after hotter Tokyo CPI. GBP/USD slips toward 1.3510 on UK fiscal concerns, and USD/CNY steadies around 7.10 as PBoC leans against yuan weakness. Traders brace for PCE to confirm—or challenge—the USD’s bullish momentum.

Moneta Markets | 3 dagar sedan

Sterling is demonstrating stability, buoyed by shifting interest rate expectations surrounding the Bank of England (BoE)

The GBP/USD pair advanced to 1.3509 on Thursday. The primary catalyst for traders was the latest UK Producer Price Index (PPI) data.

RoboForex | 3 dagar sedan

ATFX Market Outlook 28th August 2025

S&P 500 Index closed at a new record high on Wednesday as investors awaited the week’s most anticipated event—Nvidia’s quarterly earnings after the bell, which will test whether the rally in AI-related valuations can be sustained. The Dow rose 0.32%, the S&P 500 gained 0.24%, and the Nasdaq added 0.2%.

ATFX | 3 dagar sedan

ATFX Market Outlook 26th August 2025

U.S. new home sales in July declined as persistently high mortgage rates continued to dampen housing demand. U.S. equities closed lower on Monday, with investors weighing the interest rate outlook while focusing on NVIDIA’s upcoming quarterly earnings, all while digesting last Friday’s strong rebound. The Dow Jones fell 0.77%, the S&P 500 lost 0.43%, and the Nasdaq slipped 0.2%.

ATFX | 5 dagar sedan

ATFX Market Outlook 25th August 2025

Federal Reserve Chair Jerome Powell hinted that rate cuts may be needed but stressed caution, while unveiling a new policy framework with a flexible inflation target. U.S. equities closed higher on Friday, with the Dow Jones Industrial Average reaching a record closing high. Investors poured into risk assets, driving the Dow up 1.89%, the S&P 500 up 1.52%, and the Nasdaq Composite up 1.88%.

ATFX | 7 dagar sedan

GBP/USD: Friday correction after surge

On Friday, the GBP/USD pair declined to 1.3401 after strong gains earlier in the week. The previous rally was triggered by July business activity data, which showed the best performance in a year, mainly supported by the services sector.

RoboForex | 9 dagar sedan

ATFX Market Outlook 22nd August 2025

Ahead of Fed Chair Jerome Powell’s speech tonight, three Fed officials poured cold water on expectations of a September rate cut. U.S. PMI data showed stronger business activity in August, but weekly jobless claims posted the most significant increase in nearly three months, highlighting continued labor market weakness.

ATFX | 10 dagar sedan

Eurozone PMI in Focus as Dollar Holds Strong | 21st August 2025

FX markets tread cautiously ahead of Eurozone PMI and FOMC minutes. EUR/USD holds near 1.1650 under dollar pressure, while GBP/USD slips toward 1.3400 on sticky UK inflation. USD/JPY steadies in the mid-147s, EUR/JPY consolidates near 171.70, and USD/CAD hovers at 1.3880 with oil gains offering little relief. Traders eye PMI prints and Fed signals for direction.

Moneta Markets | 11 dagar sedan

EURUSD	1.17228	GBPUSD	1.35229	AUDUSD	0.65388
USDJPY	147.041	USDCAD	1.37484	USDCHF	0.79955