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UK unemployment falls to new cycle low, stay bearish EURGBP - BNP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 11, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - UK unemployment, which fell to new cycle lows on Wednesday, reinforces BNP position to play EURGBP from the short-side.

    Key Quotes

    The UK unemployment rate declined to a new cycle low of 5.3% in September, in line with our economists’ expectations. Employment rose by more than expected, up to 177k from 140k.

    Earnings great ex-bonus slowed to 2.5%, 0.1pp below expectations. However, our economists note that this is due to base effects, and continue to expect wage growth pressures to build as base effects dissipate.

    GBP initially softened following the data, but in our view these numbers should be seen as GBP supportive.

    We remain exposed to EURGBP downside via a 0.72/0.68/0.64 put fly recommendation expiring in January.
    For more information, read our latest forex news.
     

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