All eyes on the UK unemployment rate figures

All eyes on the UK unemployment rate figures

14.12.2021

Yesterday, the three major U.S. stock indices all fell, leading to a risk-off market characterized by declining stock prices, falling interest rates, and lower oil prices. WTI crude oil dropped by about 3% to $70.50. Meanwhile, OPEC indicated that the impact of the Omicron variant on demand would be limited and revised its oil demand forecast for the first quarter of 2022 upward.

In the foreign exchange market, the pound is facing resistance at higher levels. The GBP/JPY pair fell by approximately 90 pips during U.S. trading hours yesterday and has now broken below the key 150.00 level, trading around 149.79. From a technical perspective, the GBP/JPY pair is already trading below the 200-period simple moving average (SMA) on the hourly chart, and it has been forming lower highs on the 4-hour chart as well. Therefore, we will be closely monitoring the situation to see if the downtrend continues.

Today, at 16:00 CET, the UK unemployment rate and Turkish housing import prices will be released; at 16:30, Swiss producer import prices; at 19:00, EurozoneIndustrial Production at 19:00, the US NFIB Small Business Optimism Index at 20:00, the US Producer Price Index at 22:30 during US trading hours, remarks by RBNZ Governor Orr at 28:00, and New Zealand’s Q3 Current Account Balance at 6:45 the following day. I’ll be watching the direction of the pound while monitoring changes in today’s UK unemployment rate.