Markets await unemployment figures tomorrow

18 March, 2014

Rob Bastin

As the new week gets under way sterling exchange rates continue to consolidate at current levels ahead of key data due out tomorrow. The pound has traded within a 0.5% range against the Euro and US Dollar for the last week which is set to change as the week develops and further UK data is released on Wednesday in particular. The markets are calmly awaiting the latest Bank of England minutes along with last month’s up to date unemployment figures which continue to be the driver of potential interest rate changes in 2015.  

There were some announcements yesterday for other countries however which had a small effect on their respective currencies. Euro-zone Consumer Price Index figures posted a 0.3% growth in February, up from -1.1% last month and contributing to a yearly growth figure of 0.7% on inflation. Deflation has been a real fear of late in the Euro-zone, despite Mario Draghi’s  upbeat stand on the matter. This improved figure will be further welcome news to the Euro-zone and will go some way to postponing any immediate speculation on further rate cuts by the ECB. There was also good news out from the US as February’s Industrial Production figures were up by 0.8% from January. 

Today is again all about the Euro and the US starting at 10:00am with the latest Trade Balance and economic sentiment figures for the Euro-zone. In the afternoon at 12:30pm The US will take front stage at we see their latest Consumer Price Index figures which are currently expected to be 0.4% lower at 1.2% growth on a year to year basis.

Whist UK data will have to wait until Wednesday, the Bank of England governor Mark Carney will be speaking this evening at 5:45pm ahead of tomorrow’s minutes. As ever his words will be carefully chosen and this markets will be listening in for any further guidance on the UK recovery and the Bank of England’s intentions moving forward. To keep on the front foot of any potentially favourable market movements, make sure you keep in close contact with your broker regarding any imminent requirements to send money abroad.