Pound picks up as a result of jobs data
Tuesday 16 November, 2021
Daily Currency Update
GBP - British Pound
This morning saw the release of September's jobs figures which surprised to the upside. The UK's unemployment rate fell by more than expected to 4.3%, whilst an extra 247k jobs were added. Importantly at the moment, the UK jobs market is in the focus for the Bank of England and this morning's positive release would likely have been welcomed by any policymakers that are erring on the side of a rate hike. On top of this, it now appears that the majority of workers who were kept on the payroll whilst furloughed have remained in employment, adding further support for the pound. Next for the pound (and the Bank of England) is tomorrow's inflation data.
Key MoversThere were fresh worries for the euro yesterday as it hit new lows for the year against the US dollar. The currency pair has moved from EUR/USD 1.1650+ at the end of October to below 1.1400. President Lagarde of the European Central Bank spoke yesterday and stressed that inflation will likely subside across Europe next year. The ECB currently remains one of the least likely central banks to raise their interest rates in the near term and as a result this has put the Euro on the back foot significantly. This is coupled alongside the fact that more of Western Europe appears on the brink of further lockdowns and restrictions, a move that could further act as an anchor on the euro.
Today's highlight will be US retail sales, which could continue to surprise and beat expectations.
- GBP/USD: 1.3360 - 1.3480 ▲
- GBP/EUR: 1.1720 - 1.1850 ▲
- GBP/AUD: 1.8220 - 1.8370 ▲
- EUR/USD: 1.1360 - 1.1460 ▼