GBP/USD had a disastrous week, as the pair dropped 400 points. GBP/USD closed at 1.5042. This week’s key events are Average Earnings Index and Claimant Count Change. Here is an outlook on the major events moving the pound and an updated technical analysis for GBP/USD.
Updates:
The US dollar pummeled the pound last week, following the Non-Farm Payrolls report, which more than beat expectations, with 271K jobs gained and a 2.5% y/y gain in wages. This outstanding release points to a strong labor market, and certainly keeps the December rate hike option wide open. In the UK, the BOE lowered forecasts and extended the inflation target for 3 years, and the pound reacted with sharp losses. Solid PMIs and an excellent Manufacturing Production report was not enough to stop the dollar juggernaut.
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