06/12/2024
Written by: Ian Morley
Summary:
US jobless claims were lower than anticipated yesterday, easing recent concerns about the US economy. This data led to a 3-basis-point reduction in the expected interest rate cuts for September, which in turn pushed US equities higher. The USD appreciated broadly as a result, with the GBP also gaining strength due to its link to equity market performance.
Market Insight:
Today’s calendar is relatively light, with the main focus on Canada’s unemployment figures. We anticipate that the positive risk sentiment will continue to drive markets upward, which should help the GBP regain the ground it lost over the past week. Looking ahead, next week promises to be more eventful with key releases including UK employment data, US and UK inflation figures, UK and EU GDP reports, and retail sales data from both the UK and US.