Yesterday, over European trading hours, in the absence of any major catalysts, markets were rather muted.
US and China began trade talks in London with initial reports suggesting that talks went well. As a result, last night stocks rallied and USD firmed up. Talks are set to continue today.
*Daily move - against G10 rates at 7:00 am, 10.06.25
** Indicative rates - interbank rates at 7:00 am, 10.06.25
The pound has taken a knock this morning after weaker-than-expected job numbers this morning. Weekly earnings came in at 5.3% year-on-year compared to an estimate of 5.5%, and the unemployment rate rose to 4.6%.
Market expectations for the next rate cut have shifted forward from November to September.
Nothing further to note in the Economic Calendar today so we wait for further developments in US-China talks today to gauge FX reaction, but we would expect pressure to remain on the pound throughout the day.
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