The Pound has continued to strengthen in the last 24 hours with the GBP/EUR rate moving sharply back towards the top end of it's trading range. This sharp increase could pave the way for a break out to the upside although more positive data will probably be needed for that to happen.
The moves have been bolstered by better than expected employment data out this morning. Analysts were expecting unemployment in the UK to sit somewhere around 4.4%. However it's come in at 4.3%. On top of this the average wages are higher than expected also. This points towards a stronger UK economy.
The same Pound strength has been felt against the Dollar, the Canadian Dollar and the Swedish Krona.
There has also been a levelling off in the Covid situation in the UK with detailed updates coming it from Professor Van-Tam and Professor Whitty yesterday. The opening up of the booster programme sees the continuation of the vaccination effort in the UK that beats some metrics from further around the globe. Any negative updates around this story could see the Pound drop back.
Today is a big day for data, so could prove to be a relatively volatile day. First up is European GDP data followed by US Retail Sales numbers. After a number of speeches from the FED we have the ECB's Christine Lagarde giving a speech. And as if that wasn't enough we have the UK inflation numbers out at early breakfast tomorrow! Plenty to keep any traders occupied.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 GDP data
US: 13:30 Retail Sales
EUR: 17:10 ECB Lagarde speech
UK: Wednesday 07:00 Inflation data