The number of people seeking unemployment benefits fell last week, reinforcing the view the labour market continued to improve. Initial claims for jobless benefits slid 17,000 to a seasonally adjusted 297,000 in the week ended November 29, according to the Labour Department, after claims rose above the 300,000 level in the preceding week for the first time since September. Meanwhile, the four-week moving average, a less volatile measure, increased 4,750 to 299,000, albeit remaining below 300,000 for 12 consecutive weeks.
Meanwhile,The Bank of England decided to keep its monetary policy highly accommodative amid soft data pointing the UK's economy has been cooling less than initially projected in the fourth quarter, as policy makers put more emphasis on risks stemming from low inflation as well as weak global economic outlook. The MPC, as expected, kept the interest rate at 0.5%, where it has been since March 2009, and the volume of QE at 375 billion pounds. The UK's consumer-driven recovery is poised to slow down modestly going into 2015, but economists and markets forecast no rate hike until deep into next
year.
US non-farm payrolls released today
Today is all about US data, with the headliner US non-farm employment changes that is consider as one of the most important releases through month, if not the most important. Of course with the importance comes volatility, thus in case of any surprise out of US high volatility levels are expected. Meanwhile, US trade balance and unemployment rate will be released as well.GBP/USD challenges upper trend-line
Already for more than a month GBP/USD is testing the strength of the down-trend, especially its upper trend-line, that started to take its shape at July, when the pair reached a six-year high at 1.7193. The pair's trading range is becoming narrower and that could potentially provoke a break-out. Since the Pound has reached this year's low just recently, we expect a bullish break-out to be the case; however, there still is a downside risk of the pair falling lower, if it fails to breach the monthly R1 at 1.5921.Daily chart
The GBP/USD cross has not given up its bullish intentions as it continues to challenge the upper trend-line and the weekly PP located at 1.5697. However, at the same time the pair is gradually falling lower, as it is still on a down-trend. Moreover, this years low is just around the corner, namely at 1.5586, and that could potentially slow down the decline.
Hourly chart