Forex traders await UK labor market data this morning. GDP and PMI data released over the past few trading sessions showed a weaker-than-expected economy, but the British Pound soared together with PM Johnson’s electoral victory. Will today’s economic data keep the rally in the GBPNZD alive or are bears waking up? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Fourth-quarter consumer confidence in New Zealand rebounded and the ANZ Activity Outlook outlook expanded in December. This pushed the GBPNZD into a key horizontal support area. UK data has been weak but overshadowed by last week’s election victory that gave PM Johnson an overwhelming majority. How will price action react after the release of UK data later this morning? Today’s fundamental analysis will take a look at price action in both directions.
Here are the key factors to keep in mind today for British Pound trades:
- UK Jobless Claims Change and Claimant Count Rate: The UK Jobless Claims Change for November is predicted at 24.5K and the Claimant Count Rate is predicted at 3.4%. Forex traders can compare this to the UK Jobless Claims Change for October, which was reported at 33.0K and to the Claimant Count Rate, which was reported at 3.4%.
- UK Employment Change, ILO Unemployment Rate, and Average Weekly Earnings: The UK Employment Change for the tri-monthly period ending in October is predicted at -10K and the ILO Unemployment Rate is predicted at 3.9%. Forex traders can compare this to the UK Employment Change for September, which was reported at -58K and to the ILO Unemployment Rate, which was reported at 3.8%. Average Weekly Earnings for the tri-monthly period ending in October are predicted to increase by 3.4% annualized and Average Weekly Earnings Excluding Bonuses are predicted to increase by 3.4% annualized. Forex traders can compare this to Average Weekly Earnings for September, which increased by 3.6% and Average Weekly Earnings Excluding Bonuses, which increased by 3.6%.
Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand Westpac Consumer Confidence: New Zealand Westpac Consumer Confidence for the fourth-quarter was reported at 109.9. Forex traders can compare this to New Zealand Westpac Consumer Confidence for the third quarter, which was reported at 103.1.
- New Zealand ANZ Activity Outlook and ANZ Business Confidence: The New Zealand ANZ Activity Outlook for December was reported at 17.2 and ANZ Business Confidence was reported at -13.2. Forex traders can compare this to the New Zealand ANZ Activity Outlook for November, which was reported at 12.9 and to ANZ Business Confidence, which was reported at -26.4.
- New Zealand Non-Resident Bond Holdings: New Zealand Non-Resident Bond Holdings for November were reported at 49.6%. Forex traders can compare this to New Zealand Non-Resident Bond Holdings for October, which were reported at 49.9%.
Should price action for the GBPNZD remain inside the or breakout above the 2.0075 to 2.0220 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 2.0125
- Take Profit Zone: 2.0415 – 2.0470
- Stop Loss Level: 2.0000
Should price action for the GBPNZD breakdown below 2.0075 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 2.0000
- Take Profit Zone: 1.9770 – 1.9840
- Stop Loss Level: 2.0075
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