It looks like Janet Yellen should start looking for a new role as it was reported yesterday that she is out of the running for the Fed Chair next year. The papers reported yesterday that the race has been narrowed to just Powell and Taylor according to a White House insider. However, Yellen may not want to update her CV just yet as it is clear to everyone that President Trump ‘changes his mind everyday’. Besides this, US jobless claims rose yesterday according to the latest release from the Labor Department. Whilst there was an increase in claims it was only small, around 10,000, and the state of the jobs market in the US is reflected in the fact that jobless benefits are still around 40 year lows. The USD had a turbulent day beyond this but this was driven by events in Frankfurt as EUR/USD broke through 1.1750 (IB).
In the UK, CBI’s latest outlook on retail sales painted a pretty poor picture as it found that sales were up for only 15% of shops. This is due to consumers tightening their belts due to poor wage growth and the weak pound. There isn’t any data for today so the focus will swing back to the Bank of England’s interest rate meeting next week. Will they or won’t they raise rates?