Sterling gyrates as participants weigh up future risks…
The pound encountered another volatile trading session on Tuesday as investors decide whether the path for sterling is less rocky than previously expected. A no-deal 31st October exit has been legislated against and it appears a snap election is now firmly off the table for the next month-or-so. However, realistically, there’s only so long opposition benches can conduct themselves by calling Boris Johnson and his government untrustworthy yet not call for a vote of no confidence.
Sterling sold off significantly as Europe opened on Tuesday morning, losing nearly 0.60% against its peers within a 30 minute period, before slowly regaining half of those losses. Another impressive jobs report assisted the pound. The report showed the strongest levels of wage growth since prior to the financial crisis. In addition, the unemployment level fell from 3.9% to 3.8%. Another sign the UK economy is holding up despite the continued needless levels of uncertainty created by Parliament.
Today’s economic calendar is once again light. Aside from a measure of inflation related to producers in the US, the markets will likely be focusing on the huge meeting from the European Central Bank which could be one to remember!
Written by Viv Savani. 8:41am, September 11th 2019
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