FX.co ★ Trading plan for EUR / USD and GBP / USD pairs on 06/11/2019

The single European currency almost did not move yesterday, which is understandable since in Germany there was a day off on the occasion of the celebration of the Day of the Holy Spirit. But in the UK, no one rested that makes everyone sad. Although the reason for the sadness was not the working Monday itself, the data on industrial production that recently increased by 1.3% has now reduced by 1.0%, so to speak. This notifies everyone in advance about how serious the consequences of Brexit will be for the British economy. The JOLTS data on open vacancies in the United States did not even help the pound. The total number of which was reduced from 7,474 thousand to 7,449 thousand. This is after the report of the Ministry of Labor that is terrible in its content.

Today, there are data on the labor market in the UK, which again few people will be pleased. Yes, the growth rate of the average wage should remain unchanged. Then, the growth rate of the same wages can accelerate from 3.2% to 3.4% although it already take into account the premiums. However, unemployment is expected to increase from 3.8% to 3.9%. In essence, this means that British employers are downsizing and increasingly burdening the work of the remaining workers at the same time. After all, it means processing wages with premiums for the most part. Moreover, these premiums themselves are not so large in the total amount of salary costs and it turns out that even their growth does not compensate for the decrease in the total income of the British due to rising unemployment. That is, this is not a good signal for retail and the entire service sector. Even the data from the United States at producer prices, whose growth rates may slow down from 2.2% to 2.0%, will not help the pound. First, this data is not so significant. Secondly, after the recent decline in inflation, a slowdown in producer prices will not surprise anyone.

The euro/dollar currency pair after the short-term recovery process reached the level of 1.1300, where it felt a periodic pivot point. Probably, it assumes a temporary stay in the range of 1.1290/1.1325, where traders should analyze the behavior of quotes and fixation points.

The pound/dollar currency pair went into the recovery phase after working out the resistance level in the face of the range level 1.2770 as it goes down to the area 1.2680, where there was previously stagnation. Probably, it assumes a temporary stay within the current values, which will open the way to the level of 1.262 0in the case of price fixing lower than 1.2660.