EU FX Handover: Strong UK Wages Boost Pound
Fawad Razaqzada June 11, 2019 7:13 AM
A summary of news and snapshot of moves ahead of the US session.
- At midday in London, GBP was the strongest and NZD the weakest, with EUR mixed as EUR/GBP has pulled back to our noted 0.89 support level on the back of stronger UK wages and weaker Eurozone investor confidence data this morning.
- UK Average Earnings Index including bonuses came in at +3.1% vs. +2.9% expected on a 3m/y basis, while excluding bonuses they were up +3.4%, greater than +3.3% expected. Pound also boosted by comments from BoE’s Saunders, who stated earlier in the session that the bank will ‘probably’ need to return to a neutral policy stance sooner than markets expect.
- Eurozone Sentix Investor Confidence printed -3.3 vs. 2.3 expected, but not much data to look forward to from North America today, with the exception of PPI perhaps. Making up the numbers will be the IBD/TIPP Economic Optimism and NFIB Small Business Index
- Overall a quiet day in the markets with equities broadly higher despite renewed threat of China tariffs from Trump, which were brushed aside.
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