Markets await US jobs data
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Daily Currency Update
The pound gained support this morning when a better-than-expected July Retail Sales figure was released at 7am. The report showed a 0.6% m/m rise double what was forecast. The report cited the good weather and England’s Women football team retaining the European Championship as reasons for the overshoot. GBP/USD touched 1.3475 after the data however, has since retraced to around 1.3450 as focus returns to the UK’s fragile finances and the possibility that Deputy PM, Angela Rayner could be sacked after admitting she paid too little Stamp Duty on a property purchase in Hove.Key Movers
This week’s big event is scheduled for lunchtime when the monthly jobs report is released from the US. August is expected to show around 75k people were added to the workforce and the unemployment rate ticked up to 4.3% from 4.2%. As usual any large deviation from these forecasts will cause dollar volatility. Chairman of the Federal Reserve, Jay Powell, has signalled that a 25bp cut is coming in September and should we see a big miss then the possibility of a 50bp cut will increase and send the dollar lower. EUR/USD trades at 1.1670.Expected Ranges
- GBP/USD: 1.3530 - 1.3360 ▲
- GBP/EUR: 1.1470 - 1.1600 ▲
- GBP/AUD: 2.0480 - 2.0680 ▼
- EUR/USD: 1.1570 - 1.1770 ▲