Friday's job numbers allayed fears from earlier in the week about the state of the US jobs market. Number of job additions came in at 139,000 vs 126,000 expected and average hourly earnings also came in higher. Treasury yields climbed, resulting in dollar strength and US equities finished higher due to the improved sentiment of the US economy.
*Daily move - against G10 rates at 7:00 am, 09.06.25
** Indicative rates - interbank rates at 7:00 am, 09.06.25
A quiet week ahead on the data front with US CPI, UK wages and China inflation the key data points that will likely make headlines. UK wages on Tuesday are expected to show wages rose by 5.5% year on year, which should skew June's rate decision towards a hold. US core CPI is expected to show prices increased month-on-month by 0.3% in May from 0.2% in April, which would also support a decision by the Feb to leave rates unchanged.
The UK government spending review is also due out on Wednesday, which will outline how £600bn will be allocated.
The dollar is giving up some of its gains from Friday ahead of trade talks between the US and China in London today. China has already approved some applications for the export of rare earths, in a bid to ease tensions between the two parties.
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