The monetary unit of the U.K. endured its first losses against the world's reserve currency in six days on Wednesday, prompted higher by stronger-than-expected data about the regional job market, according to Bloomberg.
The pound rose against all 16 of its major counterparts after the unemployment level fell to its lowest level in well more than four years. Speculation is gaining momentum as to when the Bank of England will hike interest rates though its leader said the body will not seriously consider doing so until the jobless rate touches 7 percent.
"The labor market data was very strong … Sterling is gaining on the back of that," head of European currency strategy Ian Stannard with Morgan Stanley told Reuters on Wednesday. "It's been through some key levels, which suggests it has some room to move. Given it's broken out of its ranges it could head to $1.6450 and 83.50."
The pound climbed roughly 0.6 percent against the greenback after falling about 1.1 percent during the previous five days.
Britain's unemployment level fell to 7.4 percent in October, according to Reuters. Economists projected the metric to register at 7.6 percent.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.