GBP/USD – Buoyed by UK jobs data

Jun 11 13:06 2019 Print This Article

UK labour market data remains very healthy

Sterling has been given a boost in early European trade from the latest jobs data, which showed unemployment remaining at a 44-year low and earnings growth staying above 3%.

At a time when the economy is slow, global risks are building and Brexit is unresolved, this data is quite remarkable and very encouraging. Of course, its resilient to Brexit uncertainty and everything else may not last in the event of a broad slowdown or no-deal, but that’s no reason to be discouraged.

It also leaves the Bank of England in a very curious position, not that you’d guess so from a market pricing perspective, with a rate hike entirely priced out for the next year and no move at all the most likely outcome.

Policy makers may well be happy to sit back and wait until October to pass before deciding what to do next but in the unlikely event that we exit with a deal, they may be left seriously considering whether a hike is appropriate, especially given the current level of interest rates. Of course, there’s a lot of if’s here and plenty can change over the next four and a half months.

Read More

About Article Author

Market Pulse

Established in 2006, MarketPulse is a free news site that provides full-time coverage of the world's largest financial markets, focusing on forex, commodities, and global indices research and analysis. Armed with a global team of securities analysts and strategists, Market Pulse provides timely, accurate, and informative research on major macroeconomic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Related Items

Daily Markets Broadcast 2019-08-21

Daily Markets Broadcast 2019-08-21 Stocks rebound is short-lived The Wall Street rebound came to a halt yesterday after a three-day rally as lower yields pressured the financial sector. European shares slid after Italian PM Conte announced his resignation. Hong Kong faces transport disruptions tod ...

The seeds of fiscal stimulus

Prepared by Jeff Halley, Senior market Analyst   The next round of stimulus Long-time readers will know, that I have argued that global central banks are reaching the limits monetary policy stimulus. Looking around the developed world, only the United States has achieved anything like a post-GFC n ...

The Next Generation

Financial advisors receive multiple emails every week about the newest piece of financial technology. From portfolio management to financial planning software and everything in-between, it’s impossible to keep up with everything. And this is why we’re so excited to bring the next generation of c ...

US Dollar Retreats Awaiting FOMC Minutes

The US dollar fell across the board against major pairs on Tuesday ahead of the central bank summit hosted by the Fed. The U.S. Federal Reserve will be releasing the minutes from the July Federal Open Market Committee (FOMC) meeting where it cut the benchmark rate by 25 basis points. The minutes wi ...

2019 AGM and Convention: Fostering a Stronger Economic Environment for Business

From learning about digital advocacy strategies and trends to how the upcoming election will affect our members, our AGM enables our chamber network to be a part of a larger conversation on how to support and create lasting opportunities for Canadian business in an ever-changing society. ...