- Month end flows delivered some spooky price action yesterday with the US dollar receiving a boost against the pound. During the afternoon session UK gilts were heavily sold with some relating the previous days budget to the horrors witnessed two years ago from the Liz Truss disaster budget. GBPUSD was range bound for most of the European session until early US time when dollar buying helped push cable through support to push the pair as low as 1.2844 before recovering a touch. Concerns over the outlook for the UK economy are building after the fresh burdens were piled on UK businesses in the budget, and inflation fears are starting to build suggesting the path of UK interest rates remains uncertain. EURGBP found some support yesterday boosting the pair off it 0.83 lows to trade back into the low 0.84’s which translates to 1.1850 in GBPEUR terms.
- It is all about the US Non-farm Payrolls this afternoon with markets expecting a further cooling with the print forecast to come in around 100,000. Hurricanes and bad weather will be attributed to the likely fall and markets will be paying close attention to any revisions from last month’s solid 254,000 print. The unemployment rate is expected to come in unchanged at 4.1% with Fed officials paying close attention to the data just days ahead of next week’s FOMC decision. It is unlikely that today’s release will change the markets perception of a pair of 25bp interest rate cuts at the two remaining policy meetings of the year.
We are using cookies to give you the best experience on our website. Download the GPS Cookies Policy for more information. The main types of cookies we use are as follows: strictly necessary cookies, performance cookies, advertisement cookies, and analytics cookies. You can find out more about which cookies we are using or switch them off in settings. Except for strictly essential cookies, you have also the option to decline the usage of cookies at any time. You can do this through this cookie management panel, which appears when you first visit, and you can access it independently through the link provided at the foot of the page.