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

UK Jobs report overview

The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to June, are expected to accelerate by 3.7%, while ex-bonuses, the wages are expected to rise by 3.8% in the reported period.

The number of people seeking jobless benefits is likely to have increased by 32k in July. The ILO unemployment rate is expected to hold steady at 3.8% during the period.

How could they affect GBP/USD?

Yohay Elam, Senior Analyst at FXStreet explains, “Overall, high expectations from the UK's labor market may result in a disappointment – and that may hurt the pound. Sterling has already significantly suffered from the rising prospects of a hard Brexit and dropped to a low of 1.2015 – the lowest since January 2017. Several correction attempts have failed to materialize and were only ‘dead cat bounces’. GBP/USD has fallen despite robust employment. If it loses that – it may extend its slump." 

Key Notes

GBP/USD eyes 1.1952 as the next target — Confluence Detector

UK: Decent uptick in wage growth coming? – TD Securities

GBP/USD technical analysis: Choppy inside falling wedge amid bullish MACD

About UK jobs

The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).