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GBP/USD: waiting for labor data

GBP/USD is consolidating in a narrow $1.5430/55 range on Wednesday ahead of the BoE meeting minutes and UK labor market data to be released at 8:30 GMT.

That’s what analysts at TD Securities expect from these data releases:

Unemployment rate: “We see the risk of a higher (worse) reading, and expect to see the unemployment rate rise from 7.8% to 7.9-8.0% in June (consensus: 7.8%). The implication would be that the date of 7% unemployment would move back to 2017, which is something that may finally see short sterling rally”.

BoE minutes:  “We’re looking for a vote of 9-0 for Bank Rate unchanged and 8-1 for QE unchanged, with Miles continuing to dissent for another £25bn of QE. That said, the market reaction is more likely to be driven by the unemployment data, since BoE has been clear in making that a key indicator to watch”.

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