Forex Daily Recap – Pound Slipped on Downbeat June ILO Unemployment Data

After three adverse closings in a row, the Greenback was underway a positive closing today. After touching the 7.0707 mark yesterday, the USD/CNY pair was heading downside on Tuesday.
Bharat Gohri


Cable continued to reveal over-sold conditions on the Relative Strength Index technical indicator that pointed near 28.14 adverse level. Notably, the slight rise in the June UK Unemployment Rate had favored the bears. This June ILO Unemployment data came around 0.1% higher than the previous 3.8%. Meantime, the July Claimant Count Change recorded 4K lower than the market expectations of about 32.0 K. Also, the June 3Mo/Yr Average Earnings Excluding Bonus reported 3.9% over 3.8% forecasts.

GBPUSD 1 Day 13 August 2019

Nevertheless, the market appeared to pay less attention to other upbeat data releases and focused over the downbeat ILO report. On the technical chart, the GBP/USD pair continued to maintain its volatility within a multi-month old downward moving trend channel. Also, strong SMA conflux stands above the pair and the aforementioned trend channel, warning the bulls.

USD Index

After three adverse closings in a row, the Greenback was underway a positive closing today. On the back of robust US data, the USD Index breached above 97.63 resistance, providing strength to the Greenback bulls. In the middle of the day, the highly crucial July CPI that excluded Food & Energy data reported 2.2% over 2.1% estimates.

US Dollar Index 1 Day 13 August 2019

Notably, the YoY July CPI data upshot 0.1% this time over the market hopes of around 0.2%. Anyhow, after gaining some power and breaking above the 97.63 mark, the bulls were moving towards the next resistance target at 97.86 mark. On an overall view, the pair was maintaining a-two-and-a-half-month-old positive trend channel.


The Fiber continued to hover in and around the 1.1200 psychological handle since the last six sessions, including today. Quite noticeably, the July German Harmonized Index of Consumer Prices came in-line with the previously recorded 1.1%. Also, the German August ZEW Survey – Economic Sentiment published -44.1 points over -28.5 points market expectations.

EURUSD 1 Day 13 August 2019

Nonetheless, the ZEW Survey – Economic Sentiment data for the Eurozone also published adverse reports. On the technical chart, the EUR/USD pair had already broken above a major counter trendline, signaling for a robust upward drift. However, overhead SMA cluster and resistances stalled at 1.1251 & 1.1283 levels were confining the upside.


After touching the 7.0707 mark yesterday, the USD/CNY pair was heading downside on Tuesday.

USDCNY 1 Day 13 August 2019

On the economic docket, the July YoY YTD FDI – Foreign Direct Investment data came around 7.3% in comparison to the prior 7.2%. Such a positive Chinese data release activated the pair bears, shedding off the accumulated gains. Also, the strong growing Greenback added more oil to the fire, transferring power to the USD/CNY bears. Meantime, the MACD line hovered above the signal line with green histograms pointing to the north.


The South African Rand currency pair was triumphantly moving above the Ichimoku Clouds, maintaining a robust uptrend. Anyhow, after touching 15.47 psychological mark last day, the USD/ZAR appeared to heath south today.

USDZAR 1 Day 13 August 2019

Needless to mention, the bears seemed to pause near 23.6% Fibonacci retracement level or 15.0892 mark. Despite that, the base line and conversion line stood below the trading pair with face to the north-side. The down-lying Parabolic SAR technical indicator had touched the pair and was underway attempt to jump above the pair. The RSI that had knocked 76.54 over-bought levels appeared to play its role, dragging down the pair today.

The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.