UK employment data gives relief to struggling pound
22nd January 2020 Market Update
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?? GBP - Talks from the Bank of England hinting at cutting interest rates have weighed heavily on the pound this month, however, average earnings grew by 3.3% last month which gave a boost of around 0.5% for sterling sellers.
The odds of an interest rate cut also fell slightly from 67% to 65%, giving traders more confidence in the pound.
Manufacturing figures on Friday will need to also show significant growth for the UK to be more likely to avoid an interest rate cut.
?? EUR - The only big data out yesterday in Europe was a German survey for investors economic sentiment. The figure that came out was significantly better than expected, showing that investors are largely optimistic about the future. This data helped lift the Euro against the USD and broke above 1.11. Against the pound, it slipped from stronger data in the UK but continues to trade in the 1.17 range
?? USD - There was little out from the US yesterday, which left the greenback reactive from other currency movements.
The underlying tensions between Trump and Greta Thunberg continue at Davos, as the pair exchange subtle blows in the row over climate change. Trump was speaking the World Economic Forum but mostly about climate change, with little being said so far about trade or data. The forum is scheduled to continue until Thursday, with the subsequent press release likely to move the markets.
GBP: Better than expected earnings figures in the UK boost pound
EUR: German Investor Sentiment improves but does Little to help the Euro
USD: Trump talks trade deals in Davos
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