Pound to rise on the back of steady UK earnings?

• UK earnings forecast to remain steady

• Will a further slip in consumer confidence see euro sentiment fall?

• Could stagnant New Zealand inflation data weigh down NZD further?

Average UK earnings may push pound further

Yesterday afternoon the pound made gains, despite slipping earlier in the morning after the release of Rightmove’s latest house price index revealed asking prices increased at the slowest pace since 2012.

Today the ONS will release the average earnings for January, with the forecast predicting a steady rate of growth sitting at 3.3% for both with and without bonus, although if this figure were to increase unexpectedly it could see pound exchange rates rise.

ZEW Economic Sentiment Survey may drag on euro exchange rates

Yesterday morning saw the euro slide against both the pound and US dollar, which may have been due to Germany’s latest Producer Price Index falling further than expected in December.

This morning will see the release of the ZEW economic sentiment survey for Germany, with the forecast suggesting it will contract further in January, which could mean the euro will continue to slide during today’s session as there very little data being released today.  

Inflation data could weigh down New Zealand Dollar

The New Zealand Dollar slipped over the course of Monday, as China’s economy grew at its slowest rate since 1990, with fears about the impact on the wider global economy causing the risk-sensitive NZD to slide.

This evening will see the release of New Zealand’s Consumer Price Index, with a forecast suggesting that inflation is going to be a flat 0% compared to 0.9% in Q3. This could see the ‘Kiwi’ fall against other major currencies.

Upcoming Data:

Tuesday, 22^nd January 2019
09:30     GBP Average Earnings (Jan)
10:00     EUR ZEW Survey Germany & Eurozone – Economic Sentiment (Jan)
22:45     NZD Consumer Price Index (Q4)