Title: GBP/USD remains flat around 1.1970 on stable UK employment data
Jul 19, 2022 06:13AM ET
GBP/USD is displaying topsy-turvy moves after the release of the stable UK job data.
The Unemployment Rate has remained flat at 3.8% while the Employment Change slips to -20K.
The DXY has sensed barricades around 107.50 after a pullback.
The GBP/USD pair has remained mostly sideways as the UK Office for National Statistics has reported flat UK employment data. The Unemployment Rate has remained flat at 3.8%. However, the Claimant Count Change has tumbled to 20K from the prior release of -34.7k.
The economic catalyst which is going to hurt the pound bulls is the Average Hourly Earnings. The release of the earnings data on a lower note is not lucrative for the pound bulls. The households in the UK economy are facing the headwinds of higher price pressures, which have trimmed the value of their paychecks and henceforth the quantity of their total personal consumption expenditure.
Now, the Average Hourly Earnings have tumbled to 6.2% from the expectations of 6.9% and the prior release of 6.8%. Lower earnings along with price pressures are going to hurt the sentiment of the market participants dramatically.
Meanwhile, the US dollar index (DXY) has given a downside break of the balanced auction formed in a narrow range of 107.46-107.63 in the Asian session. The DXY has shifted into bearish territory for a short-term interval as odds of a 1% rate hike by the Federal Reserve (Fed) have trimmed significantly. The DXY bulls were performing stronger over the past few months as price pressures were soaring consecutively.
Now, the market participants believe that the inflation rate will find its conclusion sooner and will start to return to mean reversion gradually.