Yesterday, FX markets were subdued in anticipation of President Trump’s speech at the Economic Club of New York. The speech turned out to be a dud with very little implication for financial markets. Stocks sold off marginally while the FX space remained muted.
Earlier in the day, a UK employment report was released which continued to paint a positive picture of the domestic labour market given the tough conditions. Unemployment fell to 3.8% from 3.9% while average earnings slipped fractionally lower. Overall the report failed to inspire the pound which traded in a relatively restricted range across most of the trading day. Another test arrives for sterling this morning. The latest set of inflation numbers will cross wires at 0930. Forecasts are for a small 0.1% downtick on a monthly basis for the consumer price index.
Elsewhere, eurozone industrial production and US inflation are scheduled across the day. In addition, Jay Powell – Fed Chairman, is due to testify in front of a joint economic committee in Congress today. Many market participants will be keeping a very close eye on.
Written by Viv Savani. 8:28am, November 13th 2019
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