The quid has dropped after the UK public spending and jobs data
Let’s review the numbers
- The claimant count dropped – positive
- Unemployment rate rose – negative
- Rise in unemployment (46k) the highest since Feb 2013 – negative
- Employment change UP but less than expected – very mildly negative
- Wages held up – positive
- Ex-bonus wages rose – positive
- Vacancies up 24k to a new record of 823k – positive (more vacancies going unfilled leads to a tighter jobs market and wage rises)
- Bigger drop in borrowing numbers than expected – positive
I’m sitting here struggling to find a reason why the quid has dropped when you put it all together but drop is has, and to a low of 1.3928 (although it’s bouncing as I type back to 1.3964).
The seasonal skew was very evident and it’s probably that reason why it’s been a bit messy. I’d have been a buyer at 1.3900 on the data but otherwise, if I don’t understand the reasons for a certain move, I won’t touch it.
Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
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is a bit of a puzzle but then again does indicate lots of sellers out there so any move up in the dollar should see the pound head down to 1.39
The Yen looks to be leading the way a bit as well. We look to be in a bit of no-mans land at the moment.
Ryan Littlestone, our man for GBP trades. keep it up, I found you after google searches. had been your regular reader at FXL. good luck
Hi Syed.
Good to see you my friend, and I hope trading has been good for you recently.
Thanks Ryan, yes trading has been good , in fact great volatility and bull run on GBP, still learning from you guys. Now I hope I can visit and learn from you too in coming days. Have a good day and keep it up, Regards.
You too sir, welcome on board and spread the word.