There’s only one major economic catalyst on deck for the U.K. this time. Can this set the tone for pound pairs’ price action for the rest of the week?
U.K. jobs data (May 14, 8:30 am GMT)
On Tuesday’s London trading session, the U.K. economy will be printing its latest employment figures, particularly the claimant count change for April. Along with this, the unemployment rate and average earnings index as of March will also be released.
The number of folks claiming their unemployment benefits is expected to have increased by 24.2K last month, a slightly slower pace of growth compared to the earlier 28.3K uptick in joblessness. An even lower than expected read could convince pound traders that the U.K. labor situation is improving.
Meanwhile, the jobless rate is expected to have held steady at 3.9% while the average earnings index likely dipped from 3.5% to 3.4% in the three-month period ending in March. A larger drop could cast doubts on inflationary pressures stemming from higher wages, also hinting at possibly weaker spending down the line.
Keep in mind, however, that the average earnings index has been printing stronger than expected results for three out of the last five months and has also been enjoying upgrades later on. Heck, the reading has been climbing steadily from 2.4% since July 2018!
Missed last week’s price action? Read GBP’s price recap for May 6-10!