All Eyes on U.S Non Farms

The pound depreciated versus all the major currencies yesterday with the continued uncertainty regarding the Conservative leadership. The pound also appears to have slipped sharply on a statement from the German BDI industry association (the equivalent of the Confederation of British industry) which is putting German companies in the UK on notice that they should prepare for the possibility of a very hard Brexit.

Previous Day's Market Highlights

The pound depreciated versus all the major currencies yesterday with the continued uncertainty regarding the Conservative leadership. The pound also appears to have slipped sharply on a statement from the German BDI industry association (the equivalent of the Confederation of British industry) which is putting German companies in the UK on notice that they should prepare for the possibility of a very hard Brexit.

Today's Market Highlights

The main focus today will be in the afternoon session with the release of the US jobs report at 1:30PM, including non-farm payroll number. This is forecast at 82K, down from 156K, due to the impact of the two recent hurricanes. Also released is the US unemployment rate, forecast 4.4%, and the average hourly earnings change, forecast at 0.3% m/m. Also released at the same time is Canadian Employment change and unemployment rate data, forecast at 13.9K and 6.3% month on month.

This morning’s session is light on data but has already seen the release of UK HPI data, with an above forecast print of 0.8% along with Italian retail sales data, showing a drop to -0.3% m/m.

The week is rounded out with speeches from two FOMC voting members, Dudley and Kaplan, which will be closely watched for further indications of a Fed rate hike at their December meeting.