- The Sterling sees earnings and unemployment before Fed takes over the markets.
- The GBP’s beginning to lift again after shedding Brexit concerns following tentative trade agreement.
The GBP/USD is flat ahead of the European market session, trading quietly above the 1.4010 area with Japanese markets dark to celebrate the Equinox holiday.
Fed hits markets Wednesday
Wednesday is going to be all about the Fed later, with the US central bank expected to lift interest rates twenty-five basis points to 1.75% on top of the upward revision anticipated in the Fed’s rate forecast. The Fed is currently on pace to lift interest rates three times this year, but that may become four later today. The Fed’s Interest Rate Decision hits markets at 18:00 GMT. But before the Fed hits markets with interest rates, The UK will be seeing earnings, unemployment, and public sector borrowing.
UK Unemployment, Average Earnings ahead
The Sterling heads into Wednesday’s action with the UK’s Average Earnings, ILO Unemployment Rate, and Public Sector Net Borrowing in the barrel, all due at 09:30 GMT. The Average Earnings figures (both with and without bonuses) are expected to come in at 2.6% over the previous 2.5%, while the ILO 3-month Unemployment Rate is expected to hold steady at 4.4% while the Public Sector Net Borrowing is anticipated to show a flat reading of £0.00, compared to the previous period’s £-11.62B deficit. Macro figures for the UK have been bumping steadily upwards, and with Brexit’s recent fears and concerns in the rearview mirror thanks to the recent agreement between the European Union and the UK, the GBP is free to continue climbing against the Greenback.
GBP/USD Levels to consider
The pair has resumed climbing on the Daily candles, with Monday’s climb pushing the GBP/USD back into a positive run, and support is now begin provided by Tuesday’s low of 1.3982, with long-term support from the 34-day EMA at 1.3910, while resistance currently sits at Monday’s high of 1.4088 and February’s swing high of 1.4144.