- US job growth slowing
- Canada’s employment bounces back
The press is still obsessed with the fate of the Duke and Duchess of Sussex but the rest of us have more important things to consider. I know some in the UK get bilious when it is reported that the financial services sector is doing well but it is a good bellwether for the UK economy and a massive tax generator too, so it is good to hear that sentiment in financial services across the UK improved or the first time in 4 years. If you consider the 4 years in question included the acrimonious and divisive Brexit spectacle, the data is perhaps less of a surprise.
Mark Carney comments affect the Pound
‘So why is Sterling weaker?’ I hear you say. Well two words sum that up… Mark Carney. The departing Governor of the Bank of England cannot utter a statement without weakening the Pound, or so it seems. His comment last week that the Bank of England was ready to take prompt action in the event of a downturn was taken as a veiled warning about the UK economy and the Pound weakened. I wonder if his successor will fare any better.
Improvement in UK business confidence and employment data
His comments came on a day that also saw an announcement of an improvement in UK business confidence and growth in the number of permanent employees; the first growth in this area in a year. There is a heap more news from the UK this week. We get Gross Domestic Product (GDP) growth data this morning along with manufacturing production. The forecasts for both data releases are pretty broad, so there will be volatility. This week also brings UK consumer inflation and retail sales data. All is worthy of note.
US job growth slowing
Last week ended with a slowdown in US job growth, which would tend to weaken the US Dollar but the pressure on oil prices eased as tensions between the US and Iran did likewise. Iran’s problems are more domestic as we start this week; with protests around Iran about the ‘accidental’ downing of a passenger jet and the loss of 176 lives. Protestors are also challenging the dictatorial nature of their government. The world is watching you Iran.
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Canada’s employment bounces back
So the Sterling – US Dollar exchange rate starts the week below $1.30 and Sterling – Euro has also slipped to below €1.17. We have seen similar weakness in the Pound against the likes of the Australian and New Zealand Dollars, the Canadian Dollar and others.
In fact the Canadian Dollar had a boost from better than expected jobs data on Friday and maybe because they are getting two new residents who have decent unearned income levels and a lot of private wealth.
Euro awaiting Christine Lagarde speech
The Euro will be waiting for the new European Central Bank (ECB) President, Christine Lagarde and the minutes from the ECB’s last meeting. The Euro sits at its comfy level of $1.11 as we start the week.
The Daily Record is reporting about a woman who called in late for work (yet again apparently) and said she had a nail in her tyre. I am pretty sure that would have been the end of it but, to support her claim, she sent a picture of the offending nail. The only problem is that the picture is so obviously photo-shopped that it has gone viral. If the picture were real, the nail has the girth of a javelin. Ooops.
It’s been raining for days now and my husband seems very depressed by it. He spends all his time standing by the window, staring. If it continues, I’m probably going to have to let him in.