US Jobs report awaited

The latest US NonFarm Payrolls and Average Earnings figures are in focus this afternoon

Previous Day's Market Highlights

Dollar weakness contributed to a morning pick-up in both the pound and the euro. Sterling-dollar regained 1.42, while euro-dollar regained 1.25 later in the day. Sterling-euro held above 1.14 but headed lower after initial morning gains.
 
US data were mixed, doing little to assist the dollar. Notably, quarterly Nonfarm Productivity declined for the first time since early 2016. US ISM Manufacturing PMIslipped less than expected and remained in firm expansionary territory. Manufacturing PMI in the UK slowed more than forecast around the time the pound’s morning gains were capped.
 
UBS yesterday suggested the Bank of England could raise rates as soon as May if the UK agrees a transitional deal by March. Markets have been expecting a rate hike later in the year.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1380 1.1512 1.1197 2.72%
GBP/USD 1.4247 1.4346 1.3458 6.19%
EUR/USD 1.2509 1.2538 1.1915 4.97%
GBP/AUD 1.7795 1.7832 1.7098 4.12%
GBP/NZD 1.9333 1.9466 1.8613 4.38%
GBP/CAD 1.7499 1.7646 1.6757 5.04%

Today's Market Highlights

Markets will keep an eye on Eurozone Producer Price Index (10:00 GMT) figures this morning ahead of the main event, this afternoon’s January jobs report from the US (13:30 GMT). A pick-up in NonFarm Payrolls and Average Hourly Earnings from last month could temporarily strengthen the dollar, but the greenback may struggle to reverse its recent weaker trend given a March interest rate hike is already largely priced in.  
 
Next week, the Reserve Bank of Australia and the Bank of England are both expected to keep interest rates on hold. Investors will closely watch any adjustments to the Banks’ forecasts for clues as to whether the respective monetary policy outlooks are more or less hawkish.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Producer Price Index YoY (Dec) 2.3% 2.8%
13:30 USD Unemployment Rate (Jan) 4.1% 4.1%
13:30 USD Nonfarm Payrolls (Jan) 180k 148k
13:30 USD Average Hourly Earnings YoY (Jan) 2.6% 2.5%
13:00 USD Average Hourly Earnings MoM (Jan) 0.3% 0.3%
15:00 USD Michigan Consumer Sentiment Index (Jan) 95.0 94.4
15:00 USD Factory Orders MoM (Dec) 1.5% 1.3%
18:30 USD Fed Member Kaplan Speaks
20:30 USD Fed Member Williams Speaks

Caxton