Sterling rises after average earnings increases

11th September 2019 Market Update

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🇬🇧 GBP –  Monday evening, parliament was suspended to chants of “shame on you” after Boris Johnson implemented his prorogation of Parliament. Realistically there will be very few political developments over the next five weeks, unless Boris Johnson was able to gain momentum behind an amended deal prior to the EU summit in October. Yesterday sterling gained momentum as average earnings reached the highest levels for a decade, rising to 4%. Sterling rose as the likelihood of an interest rate rise (or a reduced chance of a cut) were factored in by the market. Today there is no data of note being released from the UK.

🇪🇺 EUR – French and Italian industrial production figures both came in below market expectations yesterday, however this had minimal impact on the euro. Like the UK, there is no data of note being released from Europe today, prior to the ECB’s interest rate decision tomorrow. The ECB is widely expected to keep interest rates the same at 0.0%, however the forward guidance given in the following press conference will realistically dictate any market movement.

🇺🇸 USD –  The dollar wrapped up a quiet day on the data front yesterday, with only JOLTS job openings data being released. Although this was below market expectations, it had minimal impact on the dollar. This afternoon core PPI and PPI are being released at 1.30pm, and then crude oil inventories are being released at 3.00pm.

 

Summary:

GBP: Sterling rises as average earnings reaches decade high
EUR: There is no data being released from the EU prior to tomorrow’s interest rate decision
USD: PPI and crude oil inventories are being released this afternoon


 

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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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