A pretty busy week ahead for the U.K., which will see its labor market data and BOE’s latest policy announcement.
Thinking of trading the pound in the next couple of days?
Stick around and read the potential catalysts you need to watch out for!
Labor market data (Sept 15, 6:00 am GMT)
- The number of people claiming for unemployment benefits jumped by 94,400 to 2.7M in July, the highest since Q2 2009
- The unemployment rate remained at 3.9% as workers were still kept away from work
- Analysts see the unemployment rate ticking higher to 4.1% in August, the highest in a year and a half
- Average earnings could dip by another 1.1% after a 1.2% decline in July
- The number of unemployed claimants can decrease to 51,000 for the month
BOE’s statement (Sept 17, 11:00 am GMT)
- Markets don’t expect changes to the Bank of England’s (BOE) monetary policies this week
- Brexit uncertainty, the government winding down its employment-related pandemic stimulus, concerns over a second wave of infections, and a weakening labor market should keep BOE members on their toes
- Traders are looking for signs that the BOE will boost its asset purchases in November instead
- Parliament will be debating (and is expected to pass) the controversial Internal Market Bill this week
- If passed without significant revisions, the bill could negatively affect the Brexit negotiations and increase concerns over a no-deal Brexit
- PM Boris Johnson has threatened to walk away from Brexit negotiations by October 15 if no deal has been reached by then
- RSI considers the pound “oversold” against the Aussie, Kiwi, and the euro
- GBP may soon reach oversold status against CAD, CHF, and JPY on the daily time frame
- Daily SMAs show the pound’s short and long-term bearish trends against almost all of its major counterparts
- GBP saw the most volatility against the safe havens and the euro in the last seven days