Back
19 Feb 2014
European open: UK unemployment remains in focus despite BoE shift
FXStreet (London) - Overnight saw a quiet session for data releases. The AUD was put under some pressure following wage data which showed week growth, gaining 2.6 percent on the year, down from consensus expectations of a 2.7 percent rise. The Aussie dollar also fell on expectations of weaker China PMIs in tomorrow’s report.
Today sees another loaded day of UK announcements. Bank of England minutes are due at 9:30 GMT and expected to show a unanimous vote for continued low interest rates with little in terms of language or content that was not in last week’s inflation report.
Although the inflation report signaled a fundamental shift away from focus on the 7 percent unemployment threshold, markets will still be looking to the UK jobs data released at the same time as the BoE minutes. It is expected that last month unemployment fell to 7 percent, after last month’s 7.1 percent print. Earnings will also be under some scrutiny in the hunt for some wage upside – the continuing weakness in real wages has been something that has continually threatened to drag on the UK economy.
In the US, the housing market will be the early focus, where it is expected we will see a decline from 0.999m to 0.950m, and a decline in house permits from 0.986m to 0.980, with both decreases largely blamed on the poor US wether conditions.
The main brunt of the US session focus will be on minutes from the FOMC’s January meeting. The release will be scrutinised for any dissent or hesitation among voting members over the continuing tapering of the Fed’s quantitative easing program.
Today sees another loaded day of UK announcements. Bank of England minutes are due at 9:30 GMT and expected to show a unanimous vote for continued low interest rates with little in terms of language or content that was not in last week’s inflation report.
Although the inflation report signaled a fundamental shift away from focus on the 7 percent unemployment threshold, markets will still be looking to the UK jobs data released at the same time as the BoE minutes. It is expected that last month unemployment fell to 7 percent, after last month’s 7.1 percent print. Earnings will also be under some scrutiny in the hunt for some wage upside – the continuing weakness in real wages has been something that has continually threatened to drag on the UK economy.
In the US, the housing market will be the early focus, where it is expected we will see a decline from 0.999m to 0.950m, and a decline in house permits from 0.986m to 0.980, with both decreases largely blamed on the poor US wether conditions.
The main brunt of the US session focus will be on minutes from the FOMC’s January meeting. The release will be scrutinised for any dissent or hesitation among voting members over the continuing tapering of the Fed’s quantitative easing program.