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UK Employment Provides Early Focus

GBP
MNI (London)
  • Correction away from Friday's high of $1.4185 extended Monday to $1.4071, however the probe below support at $1.4074 failed to trigger any major sales.
  • Rate recovered in NY to $1.4124 before settling around $1.4110 into the close.
  • Expected delay to full COVID lockdown restrictions lifting(Jul19) had provided a mild bearish feel for GBP but position adjustments ahead of Wednesday's FOMC/Powell press conference provided main drive.
  • Trade in Asia contained within a range of $1.4099-1.4117, the rate tracking EUR/USD moves as EUR/GBP holds just below key 10-dma (Gbp0.8597).
  • Support $1.4080/70, $1.4063(76.4% $1.4006-1.4248) ahead of $1.4035/30.
  • Resistance $1.4125/30, stronger between $1.4140/60.
  • Focus into early Europe on the UK Employment. Unemployment Claimant Count median -15.1k, ILO Unemployment rate 4.8%. AWE 4.6 3m/3m yy.
  • BOE Bailey speaks at 1215GMT.
  • US Empire Mfg, PPI, Retail Sales, IP at 1230GMT.
  • Focus remains on Wednesday's FOMC. Market on the defensive on expected reference to tapering, but strength of comments to determine next direction.
  • MNI Techs: GBPUSD conditions are unchanged and the pair remains in a range below key resistance at 1.4248, Jun 1 high. From a trend perspective, the outlook is bullish. The probe on Jun 1 of former resistance at 1.4237, Feb 24 high reinforced a bullish theme however a clear break is required to confirm a resumption of the trend. This would open 1.4315, April 18 2018 high. Key support is seen at the 50-day EMA, at 1.4039 and 1.4006, May 13 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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