All eyes on UK data as financial markets continue on volatile path…
Global tensions are on the rise; from protests in Hong Kong to China/US trade wars to Brexit, financial markets are beginning to display that they are paying attention. Yesterday was proof. Stock markets across the world fell as the situation in Hong Kong worsened, with violent videos being posted across social media mixed with rumours Chinese forces were building up on the Shenzhen border. By lunchtime in the European session many major indices were trading down nearly 1.5%, with the risk-off appetite filtering into the foreign exchange markets. Both the Japanese yen and Swiss franc were star performers with the yen up almost 4% against the US dollar in a similar amount of weeks. Financial markets are heating up just before many participants return to their desks from Summer holidays, faced by new Brexit developments as Parliament returns from recess and new US tariffs on China.
Today sees is the 1st of 3 important reports for the pound. Once again, it’s time to observe a snapshot of the health of the UK labour market. Over the years since the 2016 EU referendum the jobs market has performed remarkably well with little signs of major Brexit-stress. If anything, employment has continued to rise with average earnings following. The report will be released at 0930 and could create some volatility across GBP pairs.
Written by Viv Savani. 8:19am, August 13th 2019
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