Home » Daily Commentaries » Markets now focus on US Labor market

Markets now focus on US Labor market

Friday 7 January, 2022

Daily Currency Update

Yesterday we saw GBPUSD recover, after breaking below the $1.35 handle briefly. It finished the day in the mid $1.35s. GBPEUR also traded higher throughout yesterday’s European session, tempting to test the €1.20 handle once again, although we could require some significant momentum to break through this handle. The main reason for Sterling’s strength over recent days can be attributed to the restriction free stance the UK government is taking in response to the recent COVID-19 surge.  

Key Movers

Today we have the most important data release of the week, as the latest US labor market data for December is due. Non-farm payrolls are forecasted to rise by 400k, although recent US jobs data suggests there could potentially be a surprise to the upside, with both the ADP and Homebase employment data suggesting an uptick higher. The unemployment rate is expected to improve to 4.1% from 4.2%. Earlier this morning, German industrial production fell 0.2% on the previous month in November, after rising 2.8% the previous month, but most eyes will be on the December Eurozone consumer price index release at 10am. This is expected to show prices remaining at elevated levels, climbing 4.7% on the year, a slight reduction from 4.9% the previous month.

Expected Ranges

  • GBP/USD: 1.3515 - 1.3595 ▲
  • GBP/EUR: 1.1935 - 1.2010 ▲
  • GBP/AUD: 1.8890 - 1.8985 ▲
  • EUR/USD: 1.1355 - 1.1285 ▼