- Sterling performed poorly yesterday as poor car sales data compounded an already weak pound following Theresa May’s disastrous speech on Thursday.
- The September car sales figure is keenly observed by investors and is a big month for the car industry as many consumers wait until the new registration numbers come out in September before purchasing i.e. September is a barometer of the health of the UK new car market.
- The figure was down a shocking 9.3% from September last year which is the first time in 6 years in which the figure has fallen. Diesel sales fell by over a fifth.
- Similar figures from other European countries showed an increase in sales so many analysts have stated their concern at the poor figure from the UK.
- GBP/USD fell from 1.3244 to close at 1.3118 representing a 0.95% decline in sterling value against the dollar. GBP/EUR fell by half a percent on the day opening at 1.1257 and closing at 1.12.
- In the afternoon we saw US unemployment claims come in better than expected at 260K vs 266K and US trade balance data came in as expected at -42.4B.
- Canadian trade balance came in weaker than expected at -3.4B vs -2.6B expected.
- Little to report from the overnight session.
- GBP/AUD is trading 1623, GBP/NZD is trading 1.8404 and GBP/JPY is trading 147.75.
- At 1.30pm we are expecting unemployment change and unemployment rate from Canada.
- From the US we have non-farm payrolls at 1.30pm alongside average hourly earnings m/m and unemployment rate.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13:30||USD||Average Hourly Earnings||0.3%||0.1%|
|13:30||USD||Non-farm Employment Change||82K||156K|