- Data released this morning showed that UK average earnings excluding bonuses climbed 4.8% in the three months through September, compared with a year ago, slightly down from the 4.9% recorded previously. Markets were expecting a print of 4.7%, so the data will likely spark further caution to the Bank of England ahead of the final MPC meeting of the year next month. Analysts remain split on a third interest cut of the year, and today’s report and the upcoming CPI release will be anxiously scrutinised for further signs of inflation. In a further concern to the central bank and the government, unemployment rose to 4.3% from 4% which was a larger increase than forecasted. The pound is a touch weaker after the data with GBPUSD remaining on the back foot slipping below its 200-day MA. Fears over the impact of the recent budget on the UK economy are pushing cable lower with the pair hovering above support. EURGBP finally broke key support at 0.83 yesterday – a level which had stubbornly held since the Brexit vote.
- The US dollar remains all conquering with the dollar index gaining as the single currency lost further ground in a holiday impacted session yesterday. The DXY touched its highest level in over a year helping to push EURUSD through support, with the year low at 1.0601 potentially coming into play. The fall in the euro comes as German CPI inflation came out broadly in line with expectations ahead of the ZEW survey due later this morning. Germany continues to struggle and fears of fresh tariffs when President-elect Donald Trump comes in to power are helping to push the single currency closer to the psychological 1.05 area.
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.