EU FX Handover: Strong UK Wages Boost Pound

A summary of news and snapshot of moves ahead of the US session.

  • At midday in London, GBP was the strongest and NZD the weakest, with EUR mixed as EUR/GBP has pulled back to our noted 0.89 support level on the back of stronger UK wages and weaker Eurozone investor confidence data this morning.
  • UK Average Earnings Index including bonuses came in at +3.1% vs. +2.9% expected on a 3m/y basis, while excluding bonuses they were up +3.4%, greater than +3.3% expected. Pound also boosted by comments from BoE’s Saunders, who stated earlier in the session that the bank will ‘probably’ need to return to a neutral policy stance sooner than markets expect.
  • Eurozone Sentix Investor Confidence printed -3.3 vs. 2.3 expected, but not much data to look forward to from North America today, with the exception of PPI perhaps. Making up the numbers will be the IBD/TIPP Economic Optimism and NFIB Small Business Index
  • Overall a quiet day in the markets with equities broadly higher despite renewed threat of China tariffs from Trump, which were brushed aside.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.