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Markets await US jobs data

GBP - British Pound

Sterling seems to have stabilised towards the end of this week as traders take relief from the EU Brexit extension and hope that the upcoming election will bring some stability back to politics. GBP/USD continues to trade above 1.29 with opinion polls likely to be the main driver of the pound in the run up to the December 12th vote.

Some added support has been given by a better than expected Manufacturing PMI which beat expectations by some distance, posting 49.6 compared to the 48.2 predicted. The report's authors highlighted however that "Business was still restrained by the Brexit leash, as firms were subjected to the struggle against client indecision and also the downpull of a slowing global economy."

Next week we get construction and services PMI on Monday and Tuesday respectively which again will likely highlight Brexit headwinds. Its now all about election polling for the pound. GBP/EUR trades at 1.1620 with cable at 1.2950.

Key Movers

Today's big event is the monthly jobs report from the States with the headline Non-Farm Payrolls due at 1:30pm. An additional 90k is expected to have been added to the workforce in October with a slight uptick in unemployment from 3.5% to 3.6% predicted. With the Fed appearing to have halted its cutting cycle for now, data is likely to be even more closely scrutinised than usual as well as the ongoing focus on China/US trade talks.

Yesterday's US data was a little soft with Core PCE (personal consumption expenditure), Personal Spending and the Chicago PMI all missing target. Equity markets appear to have been buoyed by a better than expected Caixin Manufacturing PMI which printed 51.7 vs 51 expected.

There are thinner than usual trading conditions today as France and Italy enjoy an extended weekend for All Saints Day. EUR/USD trades at 1.1145 with USD/JPY at 108 as all eyes await the latest US jobs numbers.

Expected Ranges

GBP/USD: 1.2890 - 1.3005 ▲

GBP/EUR: 1.1525 - 1.1655 ▲

GBP/AUD: 1.87 - 1.8870 ▲

GBP/NZD: 2.0090 - 2.0230 ▲

GBP/CAD: 1.6960 - 1.7090 ▲