Today, on June 11th, the UK released strong employment data for Q1 2014.The British Pound gained some value against the US Dollar (+0,20%) during the European trading session and is currently trading around 1,6775.
Meanwhile, Great Britain is seeing a pretty rapid increase in the rate of employment. At this point, the rate of unemployment in the Uk has already reached the lowest level since 2009. The Office for National Statistics shows that the official rate of unemployment dropped from 6,8% in Q4 2013 down to 6,6% in Q1 2014. The drop was stronger than expected since experts anticipated a drop down to 6,7%.
Apparently, these are positive stats for the British economy. They are likely to favor further growth, thereby promoting a rally in the market of GBPUSD. At the same time, experts are predicting that the Bank of England may well start raising interest rates earlier than expected.
Still, the ONS indicated a negative moment, which is a slowdown in the growth of salaries and wages including premiums. This time, it was just a 0,9% versus 1,3% a month before. The average income including the premium was up by 0,7% against 1,9% during the previous reporting period.
Last week, the Bank of England decided to leave its monetary policy unchanged while the interest rate was left at the record-low level of 0,5%. Leaving the rate ultra-low amid a sharp employment hike may result in inflation growth, which is likely to trigger an earlier-than-expected interest rate hike by the BoE.
GBPUSD
Meanwhile, the H4 chart of GBPUSD is hinting that the short-term bias is bullish, with the buyers currently dominating the market of GBPUSD, Masterforex-V Academy reports. This rally is taking place within the scope of a bullish reaction to the mid-term downtrend, the experts say. The US Dollar is 0,205 down in value against the British counterpart. At this point, we can see an ascending series of local highs, which were used as the reference points to built the bottom of the ascending MF sloping channel. The ascending and descending sloping channels together form a triangle. The direction in which the price breaks out will determine the near-term tendency in the market.
The bullish targets are 1,6817 and 1,6845.
The bearish targets are 1,6721 and 1,6699.
