Mixed US job numbers on Friday sent a signal to markets of a pause from hiking rates by the Fed in September. The data showed that fewer jobs were added than expected, but wages did rise along with a fall in the unemployment rate. USD weakened as a result.
* Daily move - against G10 rates at 7:30am, 07.08.23
** Indicative rates - interbank rates at 7:30am, 07.08.23
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The USD has started on the front foot this morning, erasing some of the losses suffered on Friday. For the rest of the day we have the investor confidence figures out from the Eurozone, as well as BoE Chief Economist Huw Pill speaking. For the rest of the week, focus will fall on US inflation numbers on Thursday, expected to show an uptick on the headline print, followed by the UK’s GDP numbers for Q2 expected to come in at 0%.
Inflation numbers from the US will be in focus on USD pairs this week. Markets are expecting some upwards risks on the headline number as well as the producer price number, with core inflation to remain at 4.8%. These numbers will back continued calls from the Fed that inflation is proving sticky, especially after seeing wage numbers on Friday come in higher than expected.
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