No Major Reaction From GBP, Yet

Published date: 12/06/2018

A small miss on the UK earnings growth, excluding bonus, which has come in at 2.8%.  This otherwise taints a relatively healthy jobs report with 3 months, on 3-month, job gains coming in at 146K.  More interestingly, the claimant count has fallen in May by 7.7k, and along with the healthier public finances, adds another positive slant on the health of the UK economy despite the disappointing manufacturing data seen yesterday.   

No major reaction from GBP as yet, with the Pound pushing modestly higher this morning, but on balance, any USD softness off the back of the inflation data today, or the FOMC tomorrow, should see Cable testing into the 1.3500-1.3600 resistance zone this week.  For EUR/GBP, it is going to be a little more sticky, with hopes that the ECB signals an end to QE at the meeting this Thursday.  Once again external factors weigh (up) heavily.



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