Market report: dollar drops after job numbers miss the mark
The dollar fell to its lowest level in over two months on Friday. This is after April jobs data came in well below expectations, dampening hopes that a surging economic recovery would spur higher interest rates.
Non-farm payrolls increased by only 266,000 jobs last month, miles from the 978,000 predicted. The number was so off, the market expectation of super-high rates and a squeeze on inflation has been pushed aside. It likely means US interest rates will remain at ultra-low levels for quite a while, keeping pressure on the dollar.
After the Scottish National Party’s (SNP) electoral victory on Thursday, Scotland’s First Minister, Nicola Sturgeon, told Prime Minister Boris Johnson that a second independence referendum is a matter of when – not if.
The UK government’s current focus is on moving out of lockdown and getting the economy back on track, with Johnson inviting Sturgeon and her Welsh counterpart Mark Drakeford to a summit on a UK-wide approach to recovery from the pandemic.
Having a referendum now would be reckless and irresponsible, said Johnson, and the UK government isn’t expected to grant formal consent for a vote to be held – as it did ahead of the 2014 referendum.
Any hint of another independence vote will put significant downward pressure on the pound.
17:00-GBP- Boris Johnson press conference
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