Sterling rallies

  • USD - Unemployment Claims
  • EUR - ECB President Draghi Speaks
  • GBP - Halifax HPI m/m

Sterling rallied this morning on a positive piece of Brexit related news. First-round negotiations between the UK and EU made an early morning breakthrough after overnight talks, helping to process toward the next stage of forging the UK’s post-exit relationship with the European Union. The Irish border was effectively parked, whilst agreements on citizen rights and the divorce bill were achieved. GBP/USD broke through a key psychological level after the announcement.

Across the pond, Non-Farm Payrolls were released. Arguably the biggest piece of data released this month. Non-farms registered a better than expected 228k against a forecast of 195k. The headline unemployment rate remained sticky at 4.1%. The positive labour data released from the States gave the Greenback a boost this afternoon.

  • GBP - Manufacturing Production m/m
  • USD - Average Hourly Earnings m/m
  • USD - Unemployment Rate

Next week will be pivotal for the Pound. The Brexit negotiations will reach a peak at the European Council meeting on the 14-15 December. The MPC also meet on the 14th and we have labour market, retail sales and most importantly, inflation data are all due. On top of all this we have Fed and ECB meetings as well.