Forex

Sterling resumes losses near 31-month low ahead of labor market data

2019-08-13 10:57:12 GMT (Economies.com)

British pound fell against a basket of currencies today, to continues its losses against US dollar, which were temporarily halted on respite yesterday, to head near the 31-month low again, ahead of the release of important British data on the labor market, which is an important indicator on the royal economy health and market's prospects of interest rate cuts.

 

As of 07:32 GMT, GBP/USD fell  by about 0.2% to $1.2055, from the opening of $1.2075, with a high of $1.2090, and a low of $1.2041.

 

Yesterday, pound rose 0.4% vs. dollar, the first gain in four days, in attempts to rebound from a 31-month low at $1.2015.

 

Over the course of the past week, British pound shed 1.1% vs. dollar, its fourth consecutive weekly loss, and the longest weekly loss streak since May, on no-deal Brexit concerns.

 

British data showed on Friday that the industrial production fell in June and the GDP fell in the second quarter for the first time since the fourth quarter of 2012,.

 

These data in addition to strong signs of a no-deal Brexit boosted market's bets for the Bank of England to ease its monetary policy and cut interest rates this year.

 

While investors are anticipating today labor market data in order to reassess these bets, as the data are an important indicator on the royal economy health, as in case of weak data, those possibilities will be boosted and the pound will be pressured.

 

By 08:30 GMT, the UK claimant count change for July is expected to rise by 42.0K from 38.0K in June.

 

The Unemployment Rate for June is expected at 3.8% unchanged, and the average earnings 3m/y is also expected to rise by 3.7% from 3.4%.

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