It’s been a slower start to proceedings as markets are on edge ahead of the main events coming up later in the week. The euro fell yesterday but it owed to political angst over the weekend. Besides that, major currencies saw no follow through to the US jobs report from Friday last week. It means that the new week looks to be fair game once again now.
Broader markets are fairly tepid as we look to European trading today. And that’s not entirely surprising. The real action in markets will only kick off tomorrow. So, today will be more of a waiting game.
But at least there is the UK labour market report to work through in the session ahead. Traders are pricing in ~32 bps of rate cuts for this year, with stickier inflation being a real impediment for the BOE. That remains the main focus, so I wouldn’t expect the jobs data today to significantly shift that dial.
0600 GMT – UK May payrolls change
0600 GMT – UK April ILO unemployment rate
0600 GMT – UK April average weekly earnings
1000 GMT – US May NFIB small business optimism index
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
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