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Pound has hit a wall
Published on 17.05.2017 22:43

The pound has made a late recovery today in the European trading session after jobless numbers hit the market above expectations.

The official unemployment rate released today from the UK came in at 4.6 percent, slightly above analysts’ expectations for a figure of 4.7 percent which was slightly undermined by the slower wage growth which hit the market at 2.4 percent.

Many believe though, that it was overall a good result, and the UK is beginning to rebound after the shock of Brexit and getting on with business,

"Reassuringly for income growth prospects, however, employment picked up further and posted a much larger-than-expected increase over the quarter," say Lloyds Bank

"Overall, the data suggest that any remaining slack continues to be absorbed." they added.

Although the pound has recovered in recent weeks it has reached strong resistance at the $1.30 mark against its US counterpart and not everybody thinks that the Brexit worries are over and it’s going to take something special for a clean break through,

“The main problem right now is the pound desperately, technically wants to test above $1.30 in the dollar. But it’s a real battle between the bulls, the bears, medium and long-term traders as to where the value is going to be in the future,” said Steve Ruffley, chief market strategist at InterTrader.


Andrew Masters

Analyst

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