- Sterling lost ground on both the euro and the US dollar yesterday with GBP/EUR briefly trading a 4-month low at 1.1223.
- GBP/EUR opened at 1.13 and fell by 0.47% to close at 1.1246.
- GBP/USD fell by 0.9% after opening at 1.3234 and closing at 1.3114.
- Sterling’s losses were as a result of the government only narrowly avoiding defeats on key Brexit legislation in recent days which further undermined confidence in the government’s ability to pass the required legislation to deliver a smooth Brexit. (PoundSterlingLive)
- The Pound’s losses came despite a solid jobs report which came in as expected supported market expectations for an interest rate hike next month.
- Average earnings 3m/y came in at 2.5% as expected.
- Claimant count change was higher than expected at 7.8K vs 2.3K.
- Unemployment rate came in at 4.2% as expected.
- Elsewhere. Canadian manufacturing sales m/m came in at 1.4%, US capacity utilisation rate came in at 78.0%, slightly short of expectations of 78.4%. US industrial production m/m came in better than expected at 0.6% vs 0.5%.
- US President Donald Trump and reversed his remark on Russian election meddling and now says that he accepts US intelligence conclusions.
- New Zealand GDT Price Index came in at -1.7%.
- GBP/AUD, GBP/NZD and GBP/JPY are currently trading at 1.7803, 1.9373 and 147.91.
- We have another busy morning for the UK with inflation data due at 9.30am.
- PM May will also address Conservative MPs later amid bitter divisions in their ranks over her Brexit policy (BBC).
- At 10am we will see final CPI from the Eurozone before US building permits and housing starts from the US.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09:30||GBP||RPI Input m/m||0.3%||2.8%|
|10:00||EUR||Final CPI y/y||2.0%||2.0%|