Cable showed signs of recovery as retreating U.S. Treasury yields caused the Dollar to weaken. Pound Sterling is still riding high off the back of the UK’s rapid COVID-19 vaccination roll out, with over 50% of all adults now having had their first jab. With this said, the UK economic data released today could force Sterling to depreciate if expectations are not met. At 07:00 today UK Employment Change for December is expected to come out at -167K with a previous of -114K. Also released at 07:00 is UK Average Earnings, Claimant Count Change, and Unemployment Rate. The consensus around the labour market is that Boris’ reopening roadmap was too late to save the February employment figures, with job losses still on the expected path despite furlough being extended. The BoE noted recently that the furlough extension would cap their unemployment expectations, but it is evident that regardless there is underlying damage to the economy.
GBPUSD opened the week steady at 1.3849. Sterling was able to make minor gains against the Greenback in the session, closing the day at 1.3854.
GBPEUR in contrast made a loss on Monday. The pair opened at 1.1655 and closed at 1.1611.
EURUSD was able to gain some rare upside yesterday, propelling itself back to 1.19. The pair opened shaky at 1.1882 and was able to climb as high as 1.1931, where it closed.
On the data front, in the afternoon we have several releases from across the pond. At 13:00 Fed member Bullard will be speaking, and an hour later we hear from Raphael Bostic, President of the Federal Reserve Bank of Atlanta. Then from 15:00 onwards we have testimony from Fed Chair Jerome Powell and speeches from Barkin and Brainard.
