Good morning
All pretty quiet in the currency world yesterday as the markets did their best to digest the data from last week while waiting for the next round of key numbers in the form of US inflation figures tomorrrow. We saw a little USD strength through the day that carried on overnight, with GBPUD and EURUSD trading as low as 1.3060 and 1.1030, however this morning that USD strength has reversed and both pairs are a touch higher again, now 1.3105 and 1.1040 respectively.
UK unemployment numbers this morning gave a bit of a boost to GBP, coming in a bit stronger than expected, the unemployment rate shifted lower to 4.1% while the increase in those claiming unemployment benefit rose by less than expected, with a downward revision to the previous months figure as well. The lower average wages should be a help to BoE when deciding whether or not to cut rates once again later this month.
Overnight we had some Aussie consumer confidence data which was pretty terrible, AUD has done quite well to ignore the release, indeed it had actually pushed a bit higher, but this morning we have seen GBP strength take GBPAUD up from 1.9605 to 1.9660, similarly GBPNZD has pushed up from 2.1245 to just shy of 2.1300.
It is a very light calendar today once again, BoCs Macklem will be speaking this afternoon but that’s about all there is on offer. Early tomorrow morning we will have a UK GDP update and industrial production numbers, but the key will be US inflation tomorrow afternoon. For those interested in US politics, Trump and Harris are holding a televised TV debate. Both are quite capable of saying some pretty daft things, it is a pretty bad state of affairs when my main interest in the debate is to see which of them makes more of a fool of themselves. One of these will be the next President of the US>
One American who I admire a great deal more than either Trump or Harris, and who would probably have done a better job as President, has sadly passed away. James Earl Jones, most famous perhaps as the voice of Darth Vader, but also played roles in many magical films including Coming to America and Field of Dreams. Some great memories.
We’ll be hoping England’s footballers leave us with some great memories this evening as they take on Finland in the Nations League at Wembley. After a win against Ireland at the weekend, we’re hoping again for more flair and attacking football than we saw in the Euro’s. The interim manager, Carsley, is likely to make some team changes for the match.
Have a great day. It’s a bit chilly, I got very close to putting the heating on yesterday but am holding out as long as I can. Not sure I’ll last all the way through to October mind you.
- 13.25 BoCs Macklem speaks
- 01.00 US presidential debate
- 07.00 UK GDP, industrial production
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