Yesterday morning saw a more than impressive jobs report from the United Kingdom. At a time when many are predicting doom and gloom and even recession, the snapshot of the labour market was a welcome distraction from all-things Brexit!
So, what did the report reveal? The positives: claimant account (individuals seeking benefit) = down, jobs created = up, average earnings = up. Negatives: unemployment rate = up (3.9% vs. 3.8 previous). Overwhelmingly, a positive report and one which should indicate that weakness in the economy is largely temporary and purely Brexit-driven. Just this morning it’s been revealed that Germany contracted 0.1% in Q2, something the European Central Bank will be taking very seriously. Most likely they will encourage the German government to turn on the taps of fiscal stimulus with the large surplus they have the luxury of possessing.
Today hosts another important report from the UK. This time it’s inflation that will be crossing the wires at 0930. With the last couple of months’ worth of significant GBP weakness will it have now filtered into prices?
Written by Viv Savani. 9:42am, August 14th 2019
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8:36am, December 19th 2019
GBP remains in focus as Bank of England announcement approaches…