- French employment stalls
- Further positive UK employment data due
By David Johnson
Sterling had another positive day after a surprise uptick in economic growth and as further talk of a Brexit deal left the lips of EU negotiator, Michel Barnier. There were some caveats to his statement but a deal 'within 6-8 weeks' is all anyone really heard. The potential for Sterling to blast much higher is clearly evident in these upward steps every time a deal looks a tad closer. So we start today with the Pound above €1.12 and $1.30. The Pound has also made gains against most other currencies ahead of this morning’s employment and average earnings data. A small gain in fresh jobs but no change in the unemployment rate are forecast but, at 4.0%, the UK must be near full employment.
The Euro started the day with no growth at all in French non-farm employment. The morning continues with what are predicted to be slightly downbeat indices from the ZEW German business surveys. It is interesting to see that the Euro doesn’t also strengthen on news of a Brexit deal but, I would argue that it ought to. German exporters would certainly benefit from continued unfettered access to the UK market.
After lunch, the data diary looks a little leaner. Canadian housing starts should be marginally better than last month and that may strengthen the Canadian Dollar but the US data is less likely to move the market.
As well we all know though, the US v China trade shenanigans and Brexit are the major market movers. So watch Twitter and the newswires and you will know as much about the market direction as anyone else.
And the fact that your wardrobe is overflowing with clothes but you haven’t got a thing to wear may not be your fault. You might just have the psychological disorder of ‘Hoarding’. The World Health Organisation says it is a real thing, so it must be true. So now you can feel OK about your wardrobe spilling over onto your chairdrobe and your floordrobe. It isn’t you, it’s a disorder. Phew, that’s a relief.