The Pound lost significant ground against its major counterparts and fell to its lowest level against the dollar since October last year after comments by Theresa May caused investors to shy away from the currency.
The fall came after the Prime Minister said remaining a member of the single market will not be a priority in Brexit negotiations, raising concerns with analysts that investors will lose confidence in the Pound until more information is available.
May’s remarks signal that a ‘’hard Brexit’’ is now more likely. She has said that she will reveal the details of her Brexit strategy in the coming weeks, as she looks to start the process of triggering Article 50.
US companies added 156,000 nonfarm payrolls in December this figure was a slightly lower than the 175,000 expected. However on a more positive note November’s payrolls number was revised up by 19,000 to 204,000 showing further jobs growth in the US .The December figure marking the 75th straight month of job growth in the US.
As expected, the unemployment rate pushed up to 4.7% from 4.6% in November. This was a result of force participation rate climbing to 62.7% from 62.6% a month ago, essentially more people re-entering the labour force.
Average hourly earnings grew 0.4% month-over-month, which was better than the 0.3% expected. It was also a significant improvement from the 0.1% decline in November. On a year-over-year basis, average hourly earnings climbed by 2.9%, which is the fastest pace of growth since June 2009.
10:00 – EUR: Eurozone unemployment rate expected to remain unchanged at 9.8%