With the UK unemployment rate at 4.0%, investors should watch the pound’s direction

With the UK unemployment rate at 4.0%, investors should watch the pound’s direction

13.09.2023

In the previous day’s U.S. currency trading, the U.S. dollar emerged as the strongest currency from European to U.S. trading hours. The EUR/USD pair fell from 1.0768 to 1.0705, breaking below the 4-hour 20-period moving average (MA) with a bearish candle.From a technical perspective, the EUR/USD pair is positioned just below the daily 10-day moving average (MA), with the 200-day simple moving average (SMA) looming above. We will need to monitor the situation closely to see if the US dollar regains strength and the EUR/USD pair continues to decline after a period of consolidation.

European currencies saw the pound rise against the yen immediately after the release of yesterday’s UK employment data, as the unemployment rate came in at 4.0% as expected. GBP/JPY rose from 182.943 to 183.821.During today’s Asian session, the pair has risen to 184.229, just below the 200-period SMA on the hourly chart. On the higher timeframe weekly chart, the 10-period MA is acting as a support level, and the pair has rebounded firmly. However, on the daily chart, the pair has been forming lower highs, so caution is advised regarding the direction until it breaks above the recent high on the daily chart.

Today, during Asian trading hours, UK GDP, UK manufacturing production, and the UK trade balance will be released at 15:00, followed by Hungarian industrial production at 15:30. During European trading hours, the Hong Kong Producer Price Index will be released at 17:30, followed by the EurozoneIndustrial Production at 17:30, Israel’s Trade Balance at 19:00, the U.S. Consumer Price Index at 21:30, U.S. Weekly Crude Oil Inventories at 23:30, the U.S. 30-Year Treasury Auction at 26:00, and the U.S. Budget Balance at 27:00. We will carefully assess the direction of the pound following the UK employment report, which showed an unemployment rate of 4.0%.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran