US in limelight with jobs day

7th February 2020 Market Update

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?? GBP - There was no data of note from the UK yesterday, and there is no significant data being released today. A slight potential blow to the government’s hopes of a trade deal with the EU will be that Trump was perceived to be particularly aggressive on the phone to Boris Johnson following the decision to include Huawei in the UK’s 5G infrastructure. However, this had minimal impact on sterling which remained relatively stable against the euro and dollar yesterday.

?? EUR - Like the UK, there was very little data of significance from the EU yesterday. German factory orders were negative and below market expectations, however they had little impact on the euro. This morning German industrial production figures were also below market expectations, sustaining concerns about the German economy. French industrial production figures were also worse than expected by the market at -2.8%. Italian retail sales are due to be released at 9pm.

?? USD - Yesterday preliminary nonfarm productivity and labor costs both came out roughly inline with market expectations. Unemployment claims also surpassed the market’s expectations. However, these three pieces had little impact on the exchange rates. Today is jobs day, with average earnings, non-farm employment change and unemployment rate all being released at 1.30pm. The rates will realistically be volatile, depending on the data released this afternoon. The market expects strong figures to once again be released from the US.

Summary:

GBP: A lack of data keeps sterling stable for the end of the week
EUR: Industrial production figures and trade balances have little impact on the euro
USD: The US is in focus today due to jobs day

 

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