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Cable Rallies to 1.6000 After UK Jobs Data and BOE Forecast

Posted by Chris Advincula on Nov 13, 2013 6:58:00 AM

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Chart: WorldWideMarkets Alpha Trader

 

LONDON – The UK LFS Unemployment Rate Fell to 7.6% in the last quarter of July-Sept from 7.7% matching the median forecast of 7.6%, but nonetheless moving closer to the Bank of England’s goal of 7%. The  October Claimant Count fell by 41,700 much better than the forecasted 30,000, declining for 12 straight months to 1.306 million. The prior month of September was even revised downward to -44,700 from -41,700 which propelled cable against its peers. Sterling initially rose to 1.5935 from 1.5885 (+50 pips) at 9:30GMT.

Cable received a second wave of buying interest which rallied by 77 points to 1.6000 after the Bank of England MPC raised their Unemployment forecast to 7% by the 3rd Quarter of 2015. The MPC also lowered their CPI forecast to 1.93% in 2 years. It also raised its growth forecast of GDP to 2.56% from 2.44% in August.

Bank of England Governor Mark Carney also made an optimistic comment saying that they won’t rule out a lower jobless threshold to 6.5%.

 

Support levels:               1.5920, 1.5900,1.5888, 1.5776

Resistance levels:           1.6010, 1.6065,1.6085, 1.6210

 

 

Chris Advincula

WorldWideMarkets Ltd.

 

 

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Chart: WorldWideMarkets Alpha Trader

 

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