Soft landing a possibility

Today's news headlines:

‘UK workforce dropouts reduce unemployment to lowest since 1974’. The UK labour market continues to tighten as the unemployment rate fell to 3.6% in the three months to July. With little excess room for employment, the extra capacity for growth is limited to an uptick in wages. This puts the Bank of England in a tough spot, staring down the barrel of a slowing economy and rising prices, an increase in wages would only exacerbate inflation further, with the headline rate far above the central bank’s 2% target. (Bloomberg)

‘JPMorgan team says soft landing is more likely than recession’. Strategists at JPMorgan believe a soft landing for the global economy is the most likely outcome. Central banks across the world have been trying to reign in soaring prices while attempting not to leave long-lasting scars on the economy. Cooling inflation could help to moderate inflation expectations in the coming months, potentially sparking a turnaround in consumer sentiment. JPMorgan maintains a positive outlook on cyclical assets heading into 2023. (Bloomberg)


Today

Asia shares continued the market trend higher overnight, with European and US equity futures following suit. The Dollar Index declined for a third straight day as markets expect US inflation to have cooled in August.

Events

Australia NAB Business Confidence (Aug): 10 (prev. 7)
UK Claimant Count Change (Aug): 6.3K (est. -13.2K)
UK Unemployment Rate (July): 3.6% (est. 3.8%)
Eurozone ZEW Economic Sentiment (Sep): 10:00AM
US CPI and Core CPI MoM (Aug): 1:30PM


Interbank rates*:

GBP/USD – 1.1709
GBP/EUR – 1.1555
EUR/USD – 1.0132
USD/CAD – 1.2983

 

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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.