GBP/USD declines ahead of UK labor data set to be released on Tuesday.

GBP/USD drops to near 1.2600 ahead of UK labor market data

GBP/USD breaks its five-day winning streak, trading around 1.2600 during Tuesday’s Asian session. Traders are awaiting UK employment data set to be released later in the day. The Claimant Count Change for January is expected to rise to 10K new unemployment benefit claimants, up from the previous 0.7K. The ILO Unemployment Rate is also forecast to increase to 4.5% from 4.4%.

British Prime Minister Keir Starmer stated on Monday that any peace deal for Ukraine would require a “US backstop” to prevent Russia from attacking again, according to Reuters. Starmer emphasized that Ukraine’s future is a crucial issue for Europe, and it is urgent for Europe to share the responsibility in addressing the situation. Read more…

GBP/USD rises ahead of UK earnings and employment data

GBP/USD traded its way into an easy fifth straight gain on Monday, climbing nearly one-third of one percent and crossing back over the 1.2600 handle. Money market flows were constrained to kick off the new trading week with US market dark for the President’s Day holiday.

UK Average Earnings for the three months ended in December are expected to tick higher on an annualized basis on Tuesday. The headline figure for both with and without bonuses factored in is expected to print at 5.9%, compared to the previous print of 5.6%. The UK Claimant Count Change for January is also projected to swing higher to 10K net new unemployment benefits seekers over the month, compared to the previous 0.7K print. The ILO Unemployment Rate is also expected to rise to 4.5% from 4.4%. Read more…