GBP/USD is trading above 1.2200, rebounding from daily lows after the UK labor market report. The UK Jobless Rate steadied at 3.7% in November while the average hourly earnings rose more than expected. The US Dollar rebound fizzles out, helping the pair.
GBP/USD picks up bids to reverse the week-start pullback from monthly high. Broad US Dollar retreat underpins Cable pair’s recovery ahead of the key jobs report. Chatters of Brexit-led labor shortage, workers’ strikes in the United Kingdom and hardships for UK PM Sunak probe GBP/USD bulls. BoE’s Bailey spread dovish remarks ahead of this week’s key data.
Early Tuesday, the UK’s Office for National Statistics (ONS) will release the December month Claimant Count figures together with the Unemployment Rate in the three months to November at 07:00 AM GMT.
Today’s UK employment data becomes more important for the GBP/USD pair traders considering the latest comments from Bank of England (BoE) Governor Andrew Bailey, as well as due to the worsening conditions of the labor strikes in Britain. Also important is the fact that the British stock market benchmark is only half a percent away from an all-time high.