- Yesterday morning kicked off with some unexpectedly positive UK employment data across the board.
- UK Average Earnings jumped to 2.1%, up from a previous 1.8% and better than the expected 1.8% rise.
- The Claimant Count Change was down 4,200 against an expected rise of 3,200.
- The Unemployment Rate dropped to a fresh 42-year low of4.4% (4.5% Exp).
- Sterling did see an initial surge following these releases, with GBP/USD testing the 1.2900 handle, whilst GBP/EUR briefly had a look at the 1.1000 level. Those moves however proved short lived as the Pound slowly declined back to opening levels.
- Eurozone Flash GDP was inline with expectations with growth of 0.6% reported in Q2.
- Sources reported yesterday that ECB President Draghi will not unveil a change in the ECB’s policy stance at Jackson Hole and that expectations of a big monetary policy speech are incorrect.
- US Building Permits 1.22M (1.25M Exp)
- US Housing Starts 1.16M (1.22M Exp)
- Perhaps unsurprisingly US President Trump has decided to dissolve his ‘Manufacturing Council’ and ‘Strategic and Policy Forum’ following a raft of CEO’s resigning this week. The resignations stemmed from his lack of condemnation of the white supremacists rally in Charlottesville.
- The latest US Federal Reserve FOMC meeting minutes revealed a division between officials, with a number of them seeing a chance of low inflation persisting for longer, whilst the others warned that a delay in the gradual removal of accommodation could lead to inflation overshooting the Fed’s 2% target.
- According to Sky sources the next round of Brexit talks could be on hold until December as the UK Government awaits the results of the German elections.
- Australia Employment Change 27.9K (19.8K Exp)
- Australia Unemployment Rate 5.6% (5.6% Exp)
- New Zealand PPI Input q/q 1.4% (0.9% Exp)
- According to a Reuters CFO survey, 69% of businesses have yet to adapt strategic planning as a result of Brexit.
- Plenty of key data to get stuck into today.
- Key early in the day will be Eurozone Inflation data due at 10am, followed just after midday by the release of minutes the most recent ECB monetary policy meeting.
- This afternoon there is a raft of US data including Unemployment Claims and Philly Fed.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.20||AUD||RBA Assist Gov Ellis Speaks|
|09.30||GBP||Retail Sales m/m||0.2%||0.6%|
|10.00||EUR||Eurozone Final CPI y/y||1.3%||1.3%|
|12.30||EUR||ECB Monetary Policy Minutes|
|13.30||CAD||Manufacturing Sales m/m||-1.0%||1.1%|
|13.30||USD||Philly Fed Manufacturing Index||18.3||19.5|
|14.15||USD||Capacity Utilization Rate||76.7%||76.6%|
|14.15||USD||Industrial Production m/m||0.3%||0.4%|
|15.00||USD||CB Leading Index m/m||0.3%||0.6%|