Bullish raft of UK labour data gives the Pound a boost

Yesterday’s markets

17th August 2017

  • GBP - Average Earnings Index 3m/y: 2.1%
  • USD - Building Permits: 1.22M
  • USD - FOMC Meeting Minutes

Sterling received a small boost yesterday after the release of three pieces of bullish labour data. The Unemployment Rate, Average Earnings and Claimant Count all exceeded market expectations, with the unemployment registering its lowest level in nearly four decades at 4.4%. However, Sterling was unable to break through key levels against the Greenback and Euro as the wage growth reading indicated it was still way behind the Consumer Price Index.

Across the pond, leading figures of the Republican party have criticised President Donald Trump’s latest comments on the violence in Charlottesville, Virginia. On Monday, Trump condemned white supremacist groups. However, he has since blamed both sides equally for the rally in Charlottesville, mentioning the far-right protestors were not all neo-Nazis and white supremacists. Members of the Republican party, World leaders and prolific figures have spoken out and condemned Trump’s comments. 

Today’s markets

16th August 2017

  • AUD - Employment Change: 27.9
  • AUD - Unemployment Rate: 5.6%
  • USD - Unemployment Claims

High tier data released to and from the pond today. In the morning, the UK release their Retail Sales figure which is expected to remain positive at 0.2%. In the afternoon, markets gain an insight into the US labour market with the release of the Weekly Jobless Claims.