FX.co ★ Global macro overview for 21/01/2016

Global macro overview for 21/01/2016:

The UK labor data was published yesterday. The UK unemployment rate unexpectedly declined to the lowest level in almost a decade. The current unemployment rate is 5.1% (down from 5.2%). As a result, the employment rate rose to 74.0%, which is the highest level since records began in 1971. There were 267K people with jobs. In overall, the number of employed people rose by 588K compared to the reporting period of the last year. Moreover, the wages grew 1.9% and earnings rose 2.0%. However, in spite of the strong data from the UK labor market, BoE governor Mark Carney still considers the weak wage growth to be the main factor preventing the regulator from the immediate interest rate hike.

The GBP/USD pair is still hovering in the narrow range zone between the levels of 1.4125 (support) and 1.4236 ( resistance). No signs of downtrend reversal are seen yet.