The Bitcoin “death cross” has occurred. The S&P 500 rallied the most in five weeks! Crude oil and gold jumped as the US dollar weakened.
The GBP needs support
What will happen?
UK will publish the unemployment rate on Tuesday, February 23, at 09:00 MT time. In normal times, it would be a second-priority indicator for Britain. But as the country is going through the deepest crisis since the XVIII century seeing a 10% contraction of its GDP, the state unemployment rate becomes a highly important dynamic to watch.
How to trade it?
Now that the traders are well aware that things are not that good for the UK at the moment, they will be looking for the slightest hints in any economic data that the outlook may be not as dire as the media are suggesting. The previous mark was 5% - just under the expected 5.1%. This time, 5.2% is the forecast, and if the actual figure is the same or greater than the expectation, it may infuse even more pessimism into the audience.
- Better-than-expected data supports the GBP;
- Worse-than-expected data puts pressure on the GBP.
Instruments to trade: GBP/USD; EUR/GBP; GBP/CHF; GBP/JPY
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
US PCE Price Index will be out on Friday at 15:30 MT.
Microsoft joined Apple in the $2 trillion dollar club! Follow PMI reports from the US, UK, and EU throughout the day!
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT.