UK unemployment rate in focus
Daily Currency Update
The focus in the UK early this week will be on the unemployment rate which is expected to remain unchanged at 3.8%, but unless there is a big miss, the market will be more focused on the wages data.Average Earnings is expected to release lower to 7.1% vs 7.2% prior. This report will shape expectations around the next Bank of England rate decision and whether the central bank is likely to go with another 50-basis point hike or step down to 25 basis points.
All eyes will be on the UK inflation report which comes out on next week (July 19th), will play a key role in the BoE's decision.
Key Movers
The US dollar was on the back foot on this morning after a miss in US jobs data scaled back market expectations on how much further the Federal Reserve would need to raise rates by.The US economy added 209,000 jobs last month, marking the smallest increase in 2.5 years and the first time in 15 months that non-farm payrolls missed expectations and led to the USD declining nearly 1% against a basket of currencies on Friday.
Expected Ranges
- GBP/USD: 1.2785 - 1.2855 ▲
- GBP/EUR: 1.1685 - 1.1745 ▲
- EUR/USD: 1.0925 - 1.0985 ▲