GBP/USD: Loss of support at 1.2125 will edge risks towards a retest of 1.20 area.

GBP/USD slips as wage data hint at moderation. Economists at Scotiabank analyze the pair’s outlook.UK wage data for August came in a bit softer than expected.Average earnings eased to 8.1% YoY over the August quarter, down from 8.5% in July. Ex-bonus earnings eased to 7.8%, but from an upwardly-revised 7.9% in July. Markets view the break in the rising wage trend as tilting risks against another BoE hike before year-end but wage growth remains very strong overall and there is still some key data ahead (e.g. CPI on Wednesday) which may sway thinking again.

Loss of support at 1.2125 will edge risks towards a retest of 1.20 area in the next day or so, given soft/bearish underlying momentum.Resistance is 1.2215/1.2225.

EDITORS’ PICKS

EUR/USD climbs above 1.0550 ahead of US data

EUR/USD gained traction and climbed to a daily high above 1.0550. Upbeat sentiment data from the Eurozone seems to be helping the Euro stay resilient against its rivals as investors await September Retail Sales data from the US.

EUR/USD News

GBP/USD holds above 1.2150 after soft UK wage inflation data

GBP/USD came under bearish pressure and declined to the 1.2150 area after the UK data showed that wage inflation was softer than expected in August. With the US Dollar struggling to gather strength ahead of key US data, however, the pair managed to stage a modest rebound.

GBP/USD News

Gold holds above $1,920 as focus shifts to US data

Gold gained traction and turned positive on the day above $1,920 after falling toward $1,910 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 4.7% ahead of US data, making it difficult for XAU/USD to gather bullish momentum.