europe union building

Will Eurozone unemployment fall to a new 8 year low?

9th January 2018 Market Update

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🇬🇧 GBP – According to Halifax, UK house prices fell by 0.6% in December signalling that Britain’s property market is weakening. Halifax also reported that both buyers and sellers are in short supply with economic uncertainty and falling wages as reasons for the decline. However, the data had little impact on the pound.

No news out today unfortunately but Sterling remains near the highs versus the US dollar since September 2017 and against the euro the highest since 20th December 2017.

🇪🇺 EUR – Despite a strong string of economic data, the euro weakened across the board with analysts citing that investors are booking profits following the single-bloc’s recent bout of strength.

On the data side, we saw retail sales accelerate to 1.5% in November and economic sentiment rising beyond what was expected by the market.

Despite the fall yesterday, markets remain positive on the euro and today’s unemployment rate figure could give investors reason to support the currency (unemployment is forecast to drop to 8.7%).

🇺🇸 USD – The selloff in the euro saw investors pile into the US dollar with the dollar index up by 0.4% yesterday. No data from the States yesterday.

No big news due out today either with markets braced for retail sales and inflation figures on Friday.

 

Key Announcements

🇪🇺 EUR
10:00am: Unemployment Rate – forecast to drop to 8.7%

 

Summary: The only notable move in the markets yesterday saw a decline in the recent strength of the euro despite strong data out of the Eurozone.
 
Theresa May’s cabinet reshuffle saw no major changes and thus no real stir in Sterling markets.

 

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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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