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UK Earnings disappoint, pound feels the pressure

16th February 2017 Market Update

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🇬🇧 GBP – Worse than expected Average Earnings figures sparked trouble for Sterling yesterday, as concerns grow that wages are not keeping up with inflation, even though 37,000 more jobs were created than expected.

🇪🇺 EUR – Positive trade balance figures for the Eurozone helped to bolster the euro during morning trading, although it was a quiet day otherwise on the data front.

🇺🇸 USD – Positive data continues to be the theme for the US, as consumer prices reached their highest prices in 4 years. The US economy is growing without signs of overheating, leading to further speculation of when the next rate hike will be.

 

Key Announcements

🇪🇺 EUR
The ECB monetary policy meeting accounts will be in the spotlight today, as struggles in Greece begin to resurface. Outcomes from the discussion are likely to set the tone for rate movement.

🇺🇸 USD
There is a strong set of data out in the afternoon, including housing starts and building permits which are set to come out positively in the states, possibly adding further pressure to the pound.

 

Our View: With no data out from the UK today, we could see the pound come under pressure. Minutes from the ECB meeting are likely to set the tone in the morning. Afternoon trading could be determined by US data, which is expected to be positive.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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