- GBP/JPY has fallen back as the UK labor market report has failed to match expectations.
- Three-month Unemployment Rate has jumped to 4.0% while June’s Claimant Count Change is added with fresh 25.7K claims.
- Jeremy Hunt cited that the administration and the central bank will do whatever is necessary to tame price pressures.
The GBP/JPY pair has sensed selling pressure while attempting to hit the immediate resistance of 182.00 in the early London session. The cross has faced a sell-off as the United Kingdom labor market data has missed expectations.
Three-month Unemployment Rate has jumped to 4.0% vs. the consensus and the former release of 3.8%. June’s Claimant Count Change jumped to 25.7K vs. a decline in the number of job-seekers at 22.5K reported last month. Employment figures have missed expectations as firms preferred to dodge credit with higher interest obligations.
Meanwhile, the odds of fat rate hike announcements by the Bank of England (BoE) are still solid amid an absence of deceleration in the labor cost data. Three-month Average Earnings excluding bonuses have maintained a steady pace of 7.3% vs. expectations of 7.1%. Households with higher disposable income could step up overall purchasing ahead and eventually will fuel price pressures.
On Monday, BoE Governor Andrew Bailey conveyed that the central banks observing labor market conditions to bring down inflation to the 2% target. Also, UK FM Jeremy Hunt cited that the administration and the central bank will do whatever is necessary to tame price pressures.
The Japanese Yen has been underpinned against the Pound Sterling amid a solid Taken Survey. Manufacturing activities in the small, medium, and largest enterprises increased tremendously while service activities showed a slower pace. Going forward, Japan’s Producer Price Index (PPI) (June) will be keenly watched. Monthly PPI is expected to show an expansion of 0.1% vs. a contraction of 0.7%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.