When is the UK Jobs Report and how could it affect GBP/USD?

UK Jobs Report overview

The UK labor market report is due for release at 06:00 GMT this Tuesday and is expected to show that the ILO Unemployment Rate held steady at 4.7% during the three months to September. Meanwhile, the Average Weekly earnings, including bonuses, are expected to rise 4.7% during the reported period, while excluding bonuses, the growth in wages is seen slowing to 4.7% from 4.8% previously.

According to Michael Hewson, an independent analyst, “the prospect of further rate cuts from the Bank of England in the near term remains less likely than the government would like. In the 3 months to July, wage growth slowed only modestly to 4.8%, from 5%, while unemployment remained steady at 4.7%.”

How could the UK Jobs Report affect GBP/USD?

A negative surprise in the UK’s wage growth numbers could accentuate the recent leg down in the British Pound (GBP) and drag the GBP/USD pair back towards the 1.3300 round-figure mark. Some follow-through weakness might expose the 1.3260 region, or an over two-month low touched last Friday.

Meanwhile, any reaction to upbeat readings is more likely to be limited on the back of the UK's fiscal concerns, though might still assist the GBP/USD pair to surpass the 1.3365 immediate hurdle and aim towards reclaiming the 1.3400 round figure. The momentum could extend further towards the next relevant hurdle near the 1.3440 area en route to the 1.3500 psychological mark.