Cable is Higher Following a Robust Jobs Report

Cable is higher in the wake of the UK Jobs data, as wages, which was below forecast, offset an unexpected drop in the unemployment rate to 5.3%. Cable popped higher in the minutes leading up to the date release, then abruptly fell to a low of 1.5131, subsequently settling around 1.5160. The intra-day high is at 1.5186, which was seen during a bout of dollar weakness during the Asian session.

The pound saw a similar price action against the euro. Overall, the UK labor report was strong with wages coming in shy of expectations, and continues to rise strongly in real terms, with the unemployment rate at 5.3%. This has now fallen through the central banks threshold of 5.5%.

Support on the currency pair is seen near the May lows at 1.5087, while resistance is seen near the 10-day moving average at 1.5263. Momentum on the currency pair remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory. The RSI moved higher with price action reflecting accelerating positive momentum.

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