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UK unemployment rates have fallen to 11-year lows of 4.8%. Nonetheless, there are signs that the labour market might be cooling, with employment growth slowing and an increase of 9,800 in the claimant count. Accumulated earnings growth remained at 2.3% with no significant inflation implications for now as short-term price…
Pound Sterling traded at its best levels in weeks against most global currencies as markets anticipate higher inflation in the UK and the potential for improved economic ties between the US and the UK. Sterling has been rising against the Euro since the start of November, but fell below 1.1600…
On Friday, Sterling remained remarkably strong against an overall stronger Dollar. There was talk about a special relationship between the USA and the UK, and the Trump government could give the UK a better negotiating position in the Brexit process. Cable touched five-week highs of 1.2674 before easing later in…
Sterling gained significant support on Thursday, breaking through the 1.1500 level against the Euro for the first time since the beginning of October. The Pound pushed above 1.2550 versus the Dollar; levels last seen just before October’s flash crash. Theresa May and Donald Trump’s telephone call yesterday affirmed the “special…
The Dollar was subjected to heavy selling pressure during the early hours of Wednesday as Trump’s victory unfolded. There was a sharp reversal during the day as the US currency made strong net gains. Futures prices indicate at least a 70% chance of a rate hike in December. Expectations of…
It’s certain – Donald Trump is the new president of the United States of America. The Republican Party also has a majority in the Senate and the House of Representatives. The financial markets responded to the unfolding news with the simplest ‘risk off’ reaction imaginable; Gold and Japanese Yen rose,…
The main risk event over the next couple of days is undoubtedly the US presidential election and it is much too early to rule out a Trump victory. This is despite the FBI stating that Hillary Clinton won’t face criminal charges and consequently calming financial markets. Both national polls and…
Hillary Clinton was gifted a huge fillip in the race to the White House when the investigation into her handling of emails was dropped. The FBI have announced “we have not changed our conclusions” when referring to their initial decision that Clinton had been careless, but not criminal. As a…
Super Thursday is not just UK-centric this month with a raft of figures, speeches and announcements. At 10am the UK High Court will announce it’s ruling on whether MP’s consent is needed to trigger Article 50; this represents one of the last barriers to Brexit commencing. The Pound will benefit…
The UK PMI Manufacturing Index was slightly weaker than expected at 54.3 from an upwardly-revised 55.5 the previous month. However, there was a further solid expansion in orders which will continue to support short-term growth prospects. Construction PMI this morning is expected to drop from September’s figure. Should the PMI…