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EUR/GBP forex signal - UK Unemployment Report - 17 Apr 2018

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Signal Details
Entry Price: 
0.8642
Take Profit: 
0.8700
Stop Loss: 
0.8626
Direction: 
Buy
Result: 
Profit
How we trade
5/5 of 5 ratings

The monthly unemployment data report from the United Kingdom will be released today at 8:30 GMT by the UK's Office for National Statistics. According to the economists polled, the UK's unemployment rate is expected to remain steady at 4.3%.

The UK's unemployment rate was seen falling from 4.4% to 4.3% in the previous month but on average, the unemployment rate has been steady at 4.3% in the previous few months.

Traders will also be looking at the wage growth data in the UK which is showing signs of picking up over the last two months. Earlier, the surge in inflation put wage growth lagging behind which eventually reduced the consumer spending.

However, given that inflation has eased from the previous highs of 3.0%, wage growth has been picking up.
Economists forecast that the UK's wages including bonuses is expected to rise 3.0% on the month. This marks acceleration in wages from 2.8% seen the three months ending February.

An increase in wages could potentially firm expectations that the Bank of England could be looking to hike interest rates when it meets at the monetary policy meeting in the month of May.

Based on the above, today's forex trading signal is EURGBP. The currency pair was seen posting some strong declines last week despite some weak economic reports from the UK. The bullish momentum in British pound came on improving sentiment on the Brexit issue.

With the currency pair posting steep losses, we expect to see a short term correction in prices. Therefore, we would go long with EURGBP at 0.8642, targeting 0.8700 with stops at 0.8626 as we expect to see price action starting to post a correction to the downtrend.

forex signal eurgbp 17 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.