Non Farm Payrolls to watch out for this afternoon

This week has been very quiet on the eco data front for the UK, and as a result, the rates have been reacting off events happening elsewhere. We saw the euro strengthen yesterday following reports that the Italian political parties have reconnected to begin talks once again to form a government and avoid the possibility of a snap election, and GBP/EUR rates lost around a cent during the trading day. Although it may sound like a lot, it’s still worth remembering that the current levels are still 5 cents better than the lows of last September and for those still looking to secure currency it is certainly worth keeping in touch with your account manager here at Currency Index to be kept up to date on the currency movements.

This morning the both the UK and the Eurozone post-Markit Manufacturing PMI at 09:30, although the big market mover for the day is likely to be this afternoon, coming from the US as they post their Non-Farm Payrolls figures at 13:30. Certainly, one to watch, especially for those with a USD requirement as historically this release can cause movements. The result is expected to increase from 164K to 188K and if this comes in we could well see the USD strengthen further and cause a direct effect on GBP/EUR rates too. Also at 13:30 the US release their Average Earnings, Unemployment Rate and Markit Manufacturing PMI, as well as a speech from FOMC member Kashkari. With lots to go on this afternoon, so be sure to stay in close contact with your Broker here at CI

Many analysts are predicting more of the same for the major currency pairs for the beginning of this month and as always a new month brings a fresh round of economic data out to push and move the rates. Brexit related talks are also still ongoing in the background so any news here is also likely to cause the rates to chop and change so as ever, if you have the requirement to buy any currency from sterling in the short term do give us a call today to talk through the various options we provide, such as our forward contracts, which can help you lock in a rate with just a 10% deposit and remove the costly risk of market movements.