The U.K. is printing its labor market numbers!
Will this force EUR/GBP to break out of its short-term range?
Before I show y’all my chart, check out the top headlines that weighed on the comdolls and boosted the dollar higher during the Asian session:
- Italian PM Conte to resign following pandemic criticism
- U.S. Senate votes overwhelmingly to confirm Yellen as first female Treasury chief
- Some in BOJ urged making ETF buying more flexible – Dec minutes
- China, New Zealand ink trade deal as Beijing calls for reduced global barriers
- Asian stocks weaken on stimulus worries, dollar holds firm
- Dollar firm as traders look to Fed to hold the line
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s labor market numbers at 7:00 am GMT
- U.K.’s CBI realized sales at 11:00 am GMT
- U.S. house price index at 2:00 pm GMT
What to Watch: EUR/GBP
The U.S. dollar and the comdolls may have gotten most of the action in the last couple of hours, but the U.K.’s jobs numbers just might bring the spotlight to the pound today.See, markets expect the unemployment rate and jobless claimants to rise even as average earnings is poised to inch higher. Not good considering that the latest PMI report already surprised to the downside and suggested that the economy has taken more heavy hits from the latest lockdown measures.
A disappointing jobs release could push EUR/GBP firmly higher from its .8880 mid-range levels to test the .8920 range resistance. We could even see bullish momentum if the 100 SMA crosses above the 200 SMA!
But if today’s report comes in better-than-expected, or if traders are in the mood to take some risks, then the higher-yielding pound could drag EUR/GBP back below the 100 SMA to revisit the .8840 range support.