- UK average earnings are growing at the fastest rate in over two years as the figures for the three months up to January showed an increase of 2.8% over the same three months of 2017. This is the biggest increase since September 2015. Excluding bonuses, earnings were 2.6% higher.
- With annual inflation printing 2.7% it suggests that the squeeze on households spending power in the UK is at least easing.
- The unemployment rate fell to 4.3% from 4.4% but the claimant count increased to 9.2k whereas it was expected to fall by 3.1K.
- Sterling posted gains on the US dollar and the euro following the earnings data.
- GBP/EUR opened at 1.1430 and closed at 1.1456 (+0.22%) after trading a high of 1.1482.
- GBP/USD rallied by over 1% after opening at 1.3997 and closing near the high of the day at 1.4139.
- As expected the FOMC raised the federal funds rate to <1.75% from <1.5%.
- US President Trump is set to announce anti-China tariffs today in an attempt to crack down on intellectual property theft by the Chinese.
- The RBNZ kept rates in New Zealand at 1.75%.
- Australian employment change came in at 17.5k vs 19.8K expected and the unemployment rate came in at 5.6% vs 5.5%.
- Eurozone flash manufacturing PMI came in worse than expected at 56.6 vs 58.1 and flash servies PMI also disappointed at 55 vs 56.
- UK retail sales came in much better than expected at 0.6% vs 0.4%.
- We hear from the Bank of England at 12pm where the MPC will likely announce an unchanged rate. The MPC votes are expected to be 9 in favour of keeping rates unchanged.
- At 12.30pm we expect unemployment claims from the US.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|12:00||GBP||MPC Official Bank Rate Votes||0-0-9||0-0-9|
|12:00||GBP||Monetary Policy Summary|
|12:00||GBP||Official Bank Rate||0.50%||0.50%|
|12:00||GBP||Asset Purchase Facility||435B||435B|
|12:00||GBP||MPC Asset Purchase Facility||0-0-9||0-0-9|