Pound rebounds after positive jobs data
The pound rebounded slightly yesterday after better than expected jobs data and the possibility that opposition within the government could threaten the controversial proposed internal market bill. There has been an increase in optimism that opposition to the bill is growing and that this can challenge legislation that has increased the likelihood of a No Deal Brexit. However, most analysts feel that this rebound will be temporary, as the majority in the house is significant and Johnson may yet make concessions to ensure the bill passes through parliament.
Yesterday’s job data may have been mixed but it had encouraging signs. The country’s employment rate rose to 4.1% from a previous 3.9%, but encouragement can be taken from the fact that the number of people in employment fell by a much smaller than expected 12,000. Job vacancies also rose to 434,000 between June and August, 30% higher than Q2 and almost half the pre-pandemic levels. As we approach the end of October, we wait to see the true impact of the much heralded furlough scheme ending.
- 07:00 – GBP – Consumer Price Index (YoY) (Aug); came in higher than expectations at 0.2%
- 13:30 – USD – Retail Sales (MoM) (Aug); expected to decrease from 1.2% to 1%
- 19:00 – USD – Federal Reserve Interest Rate Decision
- 19:00 – USD – Federal Reserve Monetary Policy Statement
- 19:00 – USD – FOMC Press Conference
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