BNPP: sell GBP ahead of UK labor data
Strategists at BNP Paribas entered into a short GBP/USD targeting $1.5250. In their view, cable will lose ground on the back of the UK employment data on Wednesday.
"We expect another solid drop in the claimant count, but the unemployment rate is expected to rise to 8%," BNP projects.
"A firmer or even stable jobless rate should reinforce the perception that the rate is not yet trending towards the central bank’s threshold (unlike in the US), which should weigh on GBP", they add.