Market report: pound suffering set backs


The pound remained on the back foot against the euro and dollar yesterday as Brexit headlines and a ‘risk off’ mood took their toll. 

Brexit fears around immigration are swirling after Brexit negotiator Michel Barnier called for a five-year moratorium on all immigration into the EU — a move that would effectively ban British settlement and all others.

Rising Covid cases and fears of further variants challenging the economic recovery are also likely to be weighing on market sentiment. The latest count showed 28,438 new cases and 26 more related deaths. This is compared to 26,750 infections and 61 deaths recorded the previous day.

Finally, the Office for National Statistics showed unemployment at 4.7%, down from  4.8%. The number of people claiming jobless benefits also dropped, down to 7,800 in July, compared to the 114,800 seen previously. The claimant count rate came in at 5.7% vs. 5.8% last.

Key announcements 

07:00 – GBP- Unemployment rate – 4.7%

07:00 -GBP – Claimant count change -7.8k

13:30 – USD – Core retail sales m/m – Forecast at 0.2% from previous 1.3% 

13:30 – USD – Retail sales m/m – Forecast at -0.2% from previous 0.6% 

18:00 – USD – Fed chair Powell speaks