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Labour in Disarray

19th February 2019 Market Update

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?? GBP – Seven Labour lawmakers quit yesterday over Jeremy Corbyn’s approach to Brexit and the continued row over anti-Semitism. The seven members are now courting others from across parliament to join their group and remain united over their desire for a second referendum. There seemed to be no impact of the news on the currency markets, as the members confirmed that their resignations will have no change in the parliamentary vote.

Figures released this morning showed that unemployment remained at 4% and wage growth increased to 3.4%, just shy of the 3.5% expected but above the current rate of inflation. Sterling remains relatively unchanged on the day so far.

?? USD – The US reopens today following yesterday’s bank holiday. However, no news is on the news docket but the dollar continues to remain relatively well supported in the absence of any news.

?? EUR – No major news out of the single bloc yesterday but the euro has taken a hit with a pessimistic outlook on current business conditions in Germany. The latest ZEW survey showed business confidence slowed for the sixth straight month adding to the woes from last week and souring the demand for the single-bloc currency.

 

Summary:
GBP: No impact from the Labour fallout, wage growth in focus today.
USD: Trading restarts following Presidents Day.
EUR: Euro continues to struggle.

 

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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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