Chart 1 Source: Tradingview May 11 2023 6:42 UTC
The above chart illustrates the average weekly wage trend for the United Kingdom during the last five years.
Market Talk
Robust UK labour conditions (low unemployment) and higher trending weekly wage growth could keep the pressure on the Bank of England (BoE) to hike rates further still
Are there any signs that UK inflation is easing?
Maybe. Maybe not…
- Unemployment remains near all-time record lows
- Core inflation expectations remain elevated
Current UK inflation rate vs BoE target
- Current 10.1%
- Target 2%
Today’s economic calendar
Bank of England (BoE) interest rate decision
- To keep the rate higher for longer?
- Core inflation remains “sticky”, implying that inflation will stay high and the BoE could be hard-pressed to hike further still
- Expectations for a 0.25% rate hike today
Source: TradingView / J. Knobel May 11 2023 6:36 UTC
Today’s trading bullets
GBP/USD valid multi-month uptrend
- GBP/USD (daily chart) current price 1.2582 is in an uptrend. This can be technically supported since current price is above its valid upward-sloping trendline (see chart 2), relative strength is above its signal line (50), MACD is above its equilibrium, as well as the fact that current price is above its 50 and 20 day moving averages. Therefore, long positions could be technically supported for very short term (5-13 days) upside prospects near 1.2670 and the 1.3070s as a medium term (26-49 days) prospective extension. Downside risk below the key support near the 1.2340s.
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Not investment advice. Past performance does not guarantee or predict future performance.
