British Pound Latest – UK Labor Market Cools, FTSE 100 Rise

Stay updated on the latest in the British Pound and FTSE 100 as the UK labor market cools and GBP steadies. FTSE 100 probes higher amid economic data.

In the latest developments on the British Pound and the UK financial markets, the Office for National Statistics has reported a marginal rise in the UK unemployment rate to 3.9%. This data and a wage slip suggest a cooling trend in the UK labor market. Analysts expect the marginal rise in unemployment to have a limited impact on future Bank of England interest rate decisions.

The GBP/USD pair, also known as Cable, reached a seven-month high of 1.2894 last Friday but has since retreated. Presently, it hovers around 1.2800, just above a support zone between 1.2740 and 1.2780. Analysts anticipate a potential retest of last Friday’s high before eyeing the 1.3000 mark.

British Pound Latest – UK Labor Market Cools, FTSE 100 on the Rise

According to IG Retail data, 38.25% of traders are net-long on GBP/USD, with a short-to-long ratio of 1.61 to 1. While net-long traders have increased by 18.49% compared to yesterday, it is still 6.35% lower than last week. Conversely, the number of net-short traders has decreased by 5.54% compared to yesterday but has risen by 9.01% from the previous week.

The FTSE 100 index shows upward momentum, approaching a cluster of prior highs around the 7,750 mark. Beyond this level, analysts note limited resistance until the April 2023 high at 7937. The trajectory of tomorrow’s release of UK GDP data at 07:00 UK time may influence the FTSE 100, determining whether the index continues its upward trajectory or faces resistance.

Despite the cooling in the UK labor market, expectations for a Bank of England interest rate cut remain unchanged, with the earliest anticipated move in August by the Monetary Policy Committee. Investors and analysts will continue to monitor economic indicators and central bank statements for further insights into the trajectory of the British Pound and the FTSE 100 index.

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