10th September 2018 Market Update
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🇬🇧 GBP – Sterling rallied on Friday after the EU’s chief negotiator Michel Barnier suggested he was open to ‘other backstops’ with regards to the Irish border question, as well as commenting he believes negotiations are 90% complete.
The Pound finished at a new one week high against the Euro and whilst there was an attempted surge against the US Dollar, US job figures did manage to make the US Dollar claw back some of its losses.
Today sees the release of industrial and manufacturing production figures forecasted to come in at 0.4% and 0.3% respectively. GDP figures for July are forecasted to show 0.2% growth up from 0.1% in June which could prove to be positive for the Pound. Although any big surges are more than likely to come from any further positive Brexit related news.
🇪🇺 EUR – Second quarter year on year growth figures showed a slowdown in the single bloc from 2.2% to 2.1% causing a decline in the Euro on Friday.
No major news out today but on Thursday we’ll see the release of its latest interest rate decision as well as an accompanying press conference. However, no big changes this time from the ECB and Mario Draghi, as rates are expected to remain at 0% and no change is expected from Draghi with respect to when the Bank will taper its QE programme.
🇺🇸 USD – US nonfarm payrolls came in higher than expected with the labour market reporting an additional 201,000 jobs added in August. Whilst the unemployment rate remained at 3.9%; wages showed their largest increase in nine years climbing to 2.9%. The Dollar rebounded on the back of the data, finishing higher against a basket of currencies by the close of play on Friday.
No major news due out today, but Thursday will see the release of August inflation data, forecasted to rise to 0.3%.
09:30am: GDP (Jul) – forecasted to rise by 0.2%
Summary: Friday’s job figures came in robustly for the US with wage growth supporting the ongoing sentiment on the Dollar.
Michel Barnier’s comments on Brexit lifted the Pound in Friday’s afternoon trade.
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