Markets steady ahead of US jobs data
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Daily Currency Update
Today, the latest US jobs report is anticipated, featuring the headline Non-Farm Payrolls number expected to reveal approximately 238,000 individuals securing employment last month. Concurrently, the release will include figures on unemployment levels and wage growth, with any deviation from the forecasted 3.8% and 0.3% month-on-month, respectively, likely to provoke market movements. The preceding five NFP readings have consistently surpassed expectations, underscoring the resilience of the US job market. Consequently, those anticipating a respite from high-interest rates sooner may be banking on a shortfall in this metric. Moreover, market attention is particularly focused on the unemployment rate; should it unexpectedly rise, we could witness declines in the dollar. However, such an outcome is still being determined, given the recent economic outperformance of the US. Over the past 24 hours, the dollar has experienced a slight weakening, with GBP/USD climbing to 1.2550 and EUR/USD reaching 1.0730, while GBP/EUR maintains its position around 1.17.Key Movers
Over the past 24 hours, there has been little news from the eurozone and the UK, with no notable top-tier data releases. However, Thursday heralds the latest Bank of England interest rate decision, where analysts do not anticipate any policy alterations. It remains intriguing to observe whether the BoE Governor will expand the possibility of a rate cut in the forthcoming months, or if his stance will adjust in response to the recent remarks from the US Federal Reserve, which emphasise the necessity of maintaining higher rates for an extended period.Expected Ranges
- GBP/USD: 1.2445 - 1.2620 ▲
- GBP/EUR: 1.1640 - 1.1745 ▼
- GBP/AUD: 1.8995 - 1.9190 ▼
- EUR/USD: 1.0675 - 1.0790 ▲