Key Data for UK and US Today

Thursday’s trading provided a small lull in an otherwise busy week of data. Following three days of mixed growth data for the UK, an absence of figures yesterday saw the Pound trading within a 0.5% range against the Euro and US Dollar and ultimately finished the day where it started. After making good gains last week the pound is now testing key levels of resistance that will be tough to break in the short term.

The Pound has found some more stable ground since the invoking of Article 50, and that is just what we can expect in the near term for sterling exchange rates, more stability rather than any significant swings in rates between now and the French elections when volatility levels could step up again. For the year ahead, Sterling’s performance will be very much driven by the Brexit negotiations and how smoothly talks develop. According to a Reuters poll of Foreign Exchange Strategists, Sterling could gain or lose an average of 5% of its value during the negotiations dependant on how they develop, with actual outcomes almost impossible to predict at this stage.

Today the morning focus is very much in the UK with the latest Manufacturing and Industrial production figures released at 9:30 am, before BoE governor Mark Carney gives a speech at 10 am. GBP estimations from NIESR will also be announced today at 1 pm shortly before the big announcement of the day with US Non-Farm Payrolls figures at 1:30 pm. Markets are hoping for a return to positive growth in the UK figures where US non-farm payrolls are expected to drop to 180k from last month strong figure of 235k. For more information contact your broker today on 0800 043 2633.