US Dollar continues its move higher against other major currencies. Tuesday was also a good day for USD, but the only currency that held its position strong against the USD was the British Pound.
GBP/USDToday, we could see some good movement in the British Pound pairs, due to the amount of news released from the UK. At 9:30 GMT, we have the Average Earnings Index, which is expected to stay in line with the forecast at +2.5%. Also, at the same time, the UK will have its unemployment rate announcement, which is also anticipated to come out in line with expectations at 4.3%. If we get a surprise and the number is above expectations, then this could potentially have a negative effect on the British Pound today and the GBP/USD might show some more weakness. If the unemployment rate is below, then we could see some strength coming back into the pair. A lot of speculators are aiming for rates to be hiked in May, but if the unemployment number won’t live up to expectations, then the rise in rates in May could be reconsidered.
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