FX.co ★ Weekly review of the GBP / USD on June 4, 2018

The dollar, of course, continued to grow but eventually finished the week at the same values on which it began. So we can say that its growth at least stopped despite all the incredibly good report of the Ministry of Labor. The unemployment rate declined from 3.9% to 3.8%, and out of agriculture, 223 thousand new jobs were created. Moreover, the growth rate of the average hourly wage has accelerated from 2.6% to 2.7%. So, the content of the text of the report was purely positive. However, the dollar could not develop its success. To some extent, a single European currency had a positive impact on the pound, which was able to improve its position due to preliminary data on inflation. Given the large share of the euro in the dollar index, the single European currency pulled up and other currencies. A small contribution was made by the data on lending in the UK, as the volume of consumer lending grew by 1.8 billion pounds against 0.4 billion pounds in the previous period. Although the number of approved applications for mortgages decreased from 62 802 to 62 455.

The current week will be almost empty on the macroeconomic data so that serious changes in the market are not expected. You can pay attention to the data on stocks in warehouses wholesale in the US, which should increase by 0.6%. This is not the best result, so far there is no reason to resume the growth of the dollar. Thus, we can assume that, due to the excessive overbought dollar, market participants will try to at least slightly eliminate imbalances, especially on the eve of the forthcoming meetings of the Federal Commission for open market operations and the Bank of England. So the pound may well grow to 1.3500.