The Pound strengthened yesterday morning after positive UK employment data revealed the jobless rate hit a 42-year low. The number of employed people reached a new record high in the first quarter of the year as unemployment hit its lowest since 1975. The figures from the Office for National Statistics (ONS) showed that unemployment in the UK fell to 4.6 per cent in the first quarter.
The gains were short lived as limited wage growth figures were confirmed at 2.4%, confirming that the gap between inflation and wage growth is widening. After the release, Labour and the unions accused the government of ignoring the plight of ordinary workers after UK pay growth fell below inflation in early 2017 for the first time in two-and-a-half years.
The Dollar is under pressure at the moment largely due to political turmoil after fallout from President Donald Trump’s dismissal of FBI Director James Comey. Investors fear that the destabilisation could distract the President further from initiating his long promised economic stimulus.
09:30 – GBP – Retail Sales expected to increase for 1.2%
13:30 – USD – Unemployment Claims expected to increase to 240k
18:00 – EUR – ECB President Draghi Speaks at the University of Tel Aviv
Report courtesy of RationalFX