Although the British pound ended the US trading session flat against the US dollar, the currency pair recovered strongly against the Euro, Japanese Yen and Swiss Franc.
UK jobless claims dropped more than expected in December while earnings including bonuses held steady. This is encouraging for the pound because it suggests that the financial sector troubles have not translated to massive layoffs in the UK. The RICS house price balance was the weakest since the early 1990s house price crash but the problems in the UK housing are already priced into the British pound. There are no UK economic numbers due for release over the next 24 hours which suggests that a further bounce may be possible. Our Technical Analyst Jamie Saettele believes that we will see an explosion higher in the GBPUSD. Read our GBPUSD Bottom Report for more details.