empty
 
 
16.05.2018 09:37 AM
Review of the GBP / USD pair as of 05/16/2018

Even before yesterday, general moods for the pound were not the best, as the forecasts for the labor market were more negative. But the reality turned out to be much worse. Yes, the unemployment rate remained unchanged, and wage growth rates without premiums were accelerated from 2.8% to 2.9%. Also, the growth rate of wages, taking into account premiums, slowed from 2.8% to 2.6%. So these forecasts completely coincided with the forecasts. But the number of applications for unemployment benefits increased from 15.7 thousand to 31.2 thousand, and not decreased to 7.8 thousand. Thus, the data rather indicate a gradual deterioration in the labor market, which was the reason for the further reduction of the pound. But the US statistics has already finally affected the mood of market participants. Of course, the growth rate of retail sales slowed from 4.9% to 4.7%. However, the previous results were revised from 4.5% but expected a slowdown to 4.1%. In other words, despite the decline in retail sales, it will more likely grow given the revision of the data. Equally important is the fact that commercial inventories remained unchanged, although they feared their further growth.

In the UK, there will be no data today, so, On the one hand, it is expected that both the number of issued building permits and the construction projects will decrease by 2.3% and 1.1%, respectively. But the negative will be smoothed by data on industrial production as the growth rate of which should accelerate from 4.3% to 4.5%.

It is most likely for the GBP/USD pair to hang around the area of 1.3500 as the market focuses on U.S. statistics.

This image is no longer relevant

Mark Bom,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback