GBP/USD (current price: 1.2528)
The British Employment Report beat expectations, as Unemployment rose by slightly less than expected, while wages grew by more than the consensus estimate. Average Earnings were up by 2.5%, versus the expected 2.3%, boosting the Pound before today’s Bank of England decision. The Pound still finished the day with steep losses, as the FED-decision sent Cable tumbling below 1.26 once again. The Bank of England’s meeting today could cause more volatility, although no change is expected in the central bank’s benchmark interest rate.
Our assessment: The pair continues to trade above the crucial 1.25 level, despite yesterday’s decline. The short-term picture remains neutral, in the face of the broad Dollar rally.
