GBP/USD edges back from 1.27 as UK jobs report looms later this morning

At 7am GMT the UK will release the November monthly jobs report. This is important data, especially in view of the UK budget which was announced at the end of October. What we do know; is that many UK companies wasted no time in shedding workers ahead of the employment tax changes due to kick in next year. The question is how much of that will show up in the November jobs data? The markets are also expecting a quite significant increase in wage costs and that is going to pose an added problem for monetary policy, especially with the Bank of England (BOE) decision looming on Thursday. So, the prospect of the BOE not cutting rates later this week helped the Pound to rebound versus the dollar and the Euro yesterday. Overnight the GBP/USD came close to the 1.27 handle after closing in the US last night at 1.2683. The range seen so far this morning has been covered by 1.2675 to 1.2698. It is going to move on these jobs numbers this morning. There will be more to add once that data is released. The GBP/USD is currently trading at 1.2677