GBP Holds Steady After Mixed UK Jobs Data
Markets digest the latest UK jobs data, with unemployment and claimant counts rising while wage growth holds steady. The euro remains in focus ahead of the ZEW sentiment survey, which may offer insights into economic expectations. Meanwhile, oil prices stay weak, and gold holds gains as investors assess global economic risks.
Key Data Out Today
- UK Employment Data (Dec)
- Claimant Count Change: 22K (vs. 10K previous)
- Employment Change: 107K (vs. 35K previous)
- ILO Unemployment Rate: 4.4% (vs. 4.5% expected)
- Eurozone Sentiment: ZEW Economic Sentiment Index shows mixed results, with Germany at 24.3, up from 18.
- US Manufacturing & Fed Speeches: NY Empire State Manufacturing expected to remain subdued at 0, with multiple Fed members speaking later today.
Commodities
- Crude Oil ($71.52, +0.19%): Oil prices remain supported despite supply concerns and weaker demand expectations.
- Brent Oil ($75.45, +0.32%): Slight recovery but remains under pressure due to growth risks.
- Gold ($2911.94, +0.44%): Investors remain cautious, keeping demand for gold elevated.
- Silver ($32.40, +0.05%): Slight gains, tracking gold’s movement.
Currency Movements
EUR/USD (1.0460, -0.23%)
The euro weakens slightly despite improved economic sentiment, with the stronger USD limiting gains.
GBP/USD (1.2598, -0.21%)
The pound is under pressure following weaker UK labor data, though wage growth remains strong.
AUD/USD (0.6355, -0.02%)
The Australian dollar holds steady but remains sensitive to global risk sentiment.
NZD/USD (0.5708, -0.54%)
The kiwi declines as risk appetite fades and US dollar strength weighs on high-beta currencies.
USD/JPY (151.95, +0.30%)
The yen weakens as US yields stabilize, reducing demand for safe-haven assets.
USD/CNY (7.2828, +0.24%)
The yuan depreciates as China’s economic outlook remains uncertain.
USD/CHF (0.9027, +0.21%)
The Swiss franc softens as investors rotate into riskier assets, limiting demand for safe havens.
USD/CAD (1.4202, +0.12%)
The loonie slips slightly despite oil price stability, with the USD maintaining control.
USD/MXN (20.32, +0.13%)
The peso remains resilient but sees mild weakness due to cautious risk sentiment.
USD/INR (86.97, +0.13%)
The rupee edges lower as higher US yields keep emerging market currencies subdued.
Market Outlook
- US Dollar: The greenback remains firm ahead of Fed speeches, with traders closely watching any signals on monetary policy shifts.
- British Pound: GBP traders will be cautious as rising unemployment could impact BoE rate expectations, though wage data remains a counterbalance.
- Eurozone Sentiment: The improved ZEW sentiment reading is a positive for the euro, but weak economic activity remains a key concern.
- Risk Sentiment: Global equities and risk-sensitive currencies could remain volatile, with Fed commentary and economic data in focus.
- Commodities: Gold is likely to remain supported as investors hedge against uncertainty, while oil prices may remain range-bound amid mixed demand signals.