US jobs data supports further rate cuts
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Daily Currency Update
The U.S. October jobs report, released on Friday, showed payrolls rising by only 12,000, falling well short of the 106,000 expected. The forecast had factored in potential setbacks from significant strikes and hurricane-related disruptions. The unemployment rate held steady at 4.1% as anticipated, with wages growing 0.4% month-on-month. With hiring trends slowing and inflation pressures easing, expectations for U.S. interest rate cuts in November and December have risen.In currency markets, GBP/USD failed to break above 1.3000 overnight and has softened slightly, opening at 1.2960 today. GBP/EUR has been trending down since Friday afternoon, sliding from 1.1950 to 1.1900 this morning. Meanwhile, EUR/USD pushed past 1.0900 overnight, up from 1.0830 late on Friday.
Key Movers
While there’s a significant amount of macroeconomic data to review this week, today is relatively quiet. Tomorrow, the main focus will be the U.S. election results, along with the UK monetary policy report and U.S. services PMI data. On Thursday, both the UK and U.S. are set to announce interest rate decisions, with each central bank expected to cut rates by another 25 basis points. This data is likely to drive volatility in both GBP and USD, impacting the broader currency market.Expected Ranges
- GBP/USD: 1.2860 - 1.3010 ▲
- GBP/EUR: 1.1840 - 1.1950 ▲
- GBP/AUD: 1.9580 - 1.9760 ▲
- EUR/USD: 1.0810 - 1.0950 ▲