UK jobs data unlikely to trouble GBP shorts – BNPP

Economists at BNP Paribas, expect February UK labour market data to show employment growth slowing to 47k from 116k in January, which would be the slowest pace since last July.

Key Quotes

“The unemployment rate will likely hold steady at 5.1% but average earnings growth is expected to have slowed a bit on a y/y basis thanks to basis effects. Our position metrics continue to indicate that GBP short positioning is stretched, but with political concerns dominating price action and data somewhat mixed, GBP recovery trades will likely require a degree of patience.”