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GBP/CAD is trading almost flat on Tuesday, though it points downwards. The pair is trading at 1.7000, down 0.02% as of 10:27 AM UTC. The slight decline comes after a surge in the GBP value after the UK’s Office for National Statics announced yesterday that the country’s economic growth had avoided a recession by expanding 0.3% during the third quarter.
The price has found strong resistance at about 1.7082. It could not break it on several occasions in the last two weeks.
The Loonie is getting traction amid increasing oil prices. Markets await US President Donald Trump’s speech about the trade situation, hoping positive hints of the deal with China.
Elsewhere, the British pound is under pressure amid mixed labor market data.
UK Jobs Show Biggest Decline in 4 Years
UK employers cut the most positions in about four years in the three months to September, according to recent data from the Office for National Statistics (ONS), which said that the number of employed dropped by 58,000 to 32.753 million.
Nevertheless, this is a better reading than analysts’ expectations of a 94,000 decline. Also, the unemployment rate declined back to its lowest level since 1975, to 3.8%.
The GBP reacted bearishly on weak wage growth, falling employment, and reduced vacancies, which point to a weaker labor market. In fact, these specific signals were cited by two Bank of England’s policymakers. They voted in favor of an interest rate cut last week.
The ONS said that wages growth, including bonuses, rose 3.6% year-on-year. Slightly down from 3.7% in the three months to August and below analysts’ expectations. Excluding bonuses, earnings rose by 3.6%, also below all forecasts.
Another sign of declining confidence in the labor market is the number of vacancies. It saw its biggest annual drop since the end of 2009. The indicator fell to 800,000 in the third quarter, from 853,000 in the same period in 2018.
The labor market is weakening ahead of the UK’s early election scheduled for December 12. The poll was called by Prime Minister Boris Johnson. He hopes to break the Brexit deadlock by consolidating the power of Conservatives.
