UK labour data positive - sterling lower

18 May, 2016

UK labour data showed an unexpected rise in pay, Average household income (excluding bonuses) lifting to a +2.0% y/y rate in the three months to March, up from 1.8% at the last measure. The bonus-included figure remained unchanged at +2.1% y/y. Unemployment for March remained unchanged at the cycle low of 5.1%, while the April claimant count dipped by 2.4k and the claimant rate remained unchanged at 2.1%. The pound very briefly rallied on the data in a knee-jerk reaction to the BoE-watched pay headline, but quickly turned lower.  GBPUSD currently trading at day lows of 1.4410, with the One Hour chart  having broken below some key moving averages and outside the lower Bollinger band.

The Brexit issue continues to dominate the horizon for sterling markets. The latest FT poll of polls has the Remain group on 46% the Leave campaign on 44% and the undecided down to 10%. A little over five weeks to referendum day and the polls continue to be erratic, no wonder GBP keeps finding sellers.


Source link  
The economic week ahead

The pendulum has swung back wickedly to trade politics after President Trump announced tariffs on $50 bln in Chinese tech and telecom...

Germany waits for SPD vote

Germany waits for SPD vote on coalition talks.600 delegates are expected to sign off party leader Schulz’s deal with Merkel designed to lay the...

Central bank meetings come into focus

Narrow ranges have prevailed so far today as market participants sit on their hands ahead of key data from key economies this week, the first of which arrives...


U.K. stock futures are down

European Outlook: Asian markets seem to have shrugged off North Korea’s missile launch and turned their focus to the progress of Trump’s tax cut...

ECB will still extend its balance sheet

After both Markit PMIs as well the Ifo reported mounting capacity pressures, there is a good chance that the ECB will cut back asset purchases...

Global economic activity has surprised

And while there are a number of potential geopolitical headwinds that could slow, if not derail the momentum, recent economic reports from the U.S. suggest...


The economic week ahead

The next four months will be busy ones for policymakers as we head into year end. It will be a busy four months for policymakers heading into year-end...

Hawkish tone from core central banks

The surprisingly hawkish tone from core central banks recently has weighed sharply on bonds and stocks, with losses exacerbated Friday amid duration...

Economic week ahead

Quarter-end will bring a day of reckoning at least for Q2, as portfolios are adjusted this week. Equities continue to loiter just below historic highs...

  


Share: