When are UK Jobs and how could they affect GBP/USD?

UK Jobs report overview

The UK labor market report is expected to show that the number of people seeking jobless benefits increased by 1.0k in the three months to Sept, compared to a decrease of 2.8k booked in the three months to August.

The unemployment rate is expected to remain unchanged at 4.3% during the period. Average weekly earnings, including bonuses, in the three months to August are expected to remain steady at 2.1%, while ex-bonuses, the wages are seen ticking slightly lower to 2.0% versus 2.1% previous.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 20 and 60 pips in deviations up to 2 to -4, although in some cases, if notable enough, a deviation can fuel movements of up to 85 pips.

How could affect GBP/USD?

A positive surprise in the claimant count combined with higher average earnings could lift Cable back above 1.32 handle. On a poor outcome, we could see the GBP/USD pair breaking below 1.3150 levels

Technically, “a weaker jobs report has the potential to extend the slide towards 1.3120 intermediate support before the pair eventually breaks below the 1.3100 handle and head towards testing 1.3065 strong horizontal support. On the flip side, momentum above the 1.3200 mark now seems to confront resistance near the 1.3225 region, which if cleared could lift the pair beyond 1.3265 area (38.2% Fibonacci retracement level) towards reclaiming the 1.3300 handle,” Haresh Menghani, Analyst at FXStreet wrote.

Key notes

UK jobs: Watch out for pay growth - HSBC

GBP Steadies Ahead of UK Jobs Data

About UK jobs

The Claimant Change released by the Office for National Statistics presents the number of unemployment people in the UK. There is a tendency to influence the GBP volatility. Generally speaking, a rise in this indicator has negative implications for consumer spending which discourage economic growth. Generally, a high reading is seen as negative (or bearish) for the GBP, while a low reading is seen as positive (or bullish).