Currency news

Signs UK job market is cooling

Head of FX Analysis at Equals Money
-
3
min read
Publish date
11/06/24
    • UK unemployment ticks higher
    • Political risk premium to keep EUR at bay


    Yesterday's currency recap

    The EUR continued to lose ground following the snap election being called in France. The political uncertainty divergence between the UK and EU continued to push GBPEUR to fresh 22-month highs. EURUSD remains at a 1-month low.

    Today's GBP rates

    Currency pair Daily move* Indicative rate**
    GBPAUD -0.32% 1.9263
    GBPCAD -0.10% 1.7512
    GBPCHF 0.15% 1.1420
    GBPDKK 0.57% 8.8349
    GBPEUR 0.57% 1.1845
    GBPJPY 0.19% 199.7720
    GBPNOK -0.41% 13.5711
    GBPNZD -0.20% 2.0789
    GBPSEK -0.40% 13.3623
    GBPUSD 0.07% 1.2729


    *Daily move - against G10 rates at 7:30am, 11.06.24

    ** Indicative rates - interbank rates at 7:30am, 11.06.24

    Key data points

    Currency Event Period Consensus Previous
    N/A None Today. N/A N/A N/A

    Upcoming speeches

    • None today.

    What we think

    This morning's data showed signs that the UK job market is cooling, with the unemployment rate ticking higher to 4.4%, and wage pressures in the private sector increasing only by 5.8%, the lowest in two years. So, welcome news for the Bank of England, and GBP is marginally lower this morning. Next event for GBP will be tomorrow's GDP number for April, expected growth at 0% down from 0.4% in March. The EUR weakness from yesterday hasn’t followed through overnight during Asian trading hours, but nonetheless the political risk premium attached to the currency will likely make it susceptible to sell-offs, should there any negative data points or news articles. USD is remaining on the front foot ahead of tomorrow's CPI and Fed meeting. No major data points out today.

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    About the author
    Thanim Islam
    Profile
    Head of FX Analysis at Equals Money

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