GBP: another lows. Overview for 15.03.2022

GBPUSD updated its local “bottom”; the labour market statistics managed to smooth “negative vibes”.

The British Pound is looking weak against the USD on Tuesday. The current quote for the instrument is 1.3046.

Earlier this morning, the pair updated its local lows at 1.2997. It happened before the UK reported on the labour market – pressure from the “greenback” was increasing and market players had to sell the pair. After the UK released some numbers, the situation reached stability, although one should admit that it is still pretty far from neutral. 

So, the Unemployment Rate in the country dropped to 3.9% in January after being 4.1% the month before. The Claimant Count Change showed -48.1K in February. These are good signals: after the coronavirus-related social restrictions were removed, businesses and enterprises managed to rebound very quickly and get back to a more or less regular way of life. 

The Average Earnings (weekly) excl. Bonus added 3.8% y/y in January against the expected reading of 3.7% y/y. The Average Earnings incl. Bonus expanded by 4.8% y/y after adding 4.3% y/y in the previous month. 

One may assume that the statistics turned out to be quite positive. In February reports, the influence of interruptions in deliveries will increase, and the March data will show it even better. However, the labour market in the UK is looking quite stable so far. 

Investors are slowly switching their attention to the BoE meeting scheduled for Thursday. As we mentioned before, the interest rate might go from 0.50% to 0.75%. If it happens, the national currency, which is not looking too good, might get some support.