Friday starts off with Andrew Bailey speaking around 10am. Bank of England’s next interest rate decision taking place on the 17th this month, markets will listen carefully for comments and indications from the governor of BoE. Currently BoE is expected to hold rates on hold for September at 3.75%. Focus will be more on upcoming meetings and forecasts which can lead to GBP volatility.
Yesterday Federal Reserve’s member Waller held a speech. We did see markets move from it. In particular gold prices who rebounded almost 2%. Waller mentioned that August inflation readings will heavily influence his decision, which will be released next Friday. Recent data has shown signs of disinflation. From his comments markets probability of a rate hike fell from 70% to around 50%.
Today’s focus will be on non-farm payroll, US jobs data. We have seen continued struggles for the US labour market, with its previous months figure coming in at -23k. This led to USD weakness. Forecasting for today is that the US labour market should see improvement and a sign of relief with the expected number at 56k. Moving closer to Federal Reserve’s next interest rate decision, on the 16th this month. Today’s jobs data followed by inflation figures next will be of very high importance to that decision and have strong impact on USD performance in the next couple of weeks.
GBP/EUR 1.1635 GBP/USD 1.3526 GBP/AED 4.9700
GBP/AUD 1.8789 GBP/CHF 1.0939 GBP/CAD 1.8675
GBP/NZD 2.3003 EUR/USD 1.1610 GBP/ZAR 21.6159