Prior to the Covid-19 pandemic, the majority of UK companies employed an on-site workforce to conduct the day-to-day running of their business, with only 27% of employees having worked from home at some point in 2019, on average.
Will Theresa May’s narrow escape keep the pound buoyed?
Eurozone Consumer Price Index to support euro?
Unemployment and government shutdown weigh on US dollar
Brexit to remain the main catalyst for movement
The pound remained buoyed throughout the session yesterday as markets saw Theresa May’s historic defeat in Parliament the previous day as a sign of an increased probability of a ‘softer’ Brexit.
Theresa May also narrowly won a vote of no-confidence in her government, triggered by Labour leader Jeremy Corbyn following the Brexit vote fiasco.
With a lack of UK economic data to be released today, Brexit is going to remain the main catalyst for movement in pound exchange rates.
Steady inflation could support euro exchange rates
The euro suffered in the session yesterday, remaining low against the US dollar and falling to a seven-week low against the pound as worries about the Eurozone economy resurfaced.
This morning the Eurozone CPI will be released, which could bolster the euro if it holds up.
If, however, the figure indicates that inflation is weakening we can expect to see a slump in the euro as fears of a slowdown intensify.
US unemployment in the spotlight
The partial government shutdown in the US, now the longest in history, has caused a delay to some US data releases, with some economists saying that it is becoming difficult to get a good reading of the economy.
US government workers have suffered, with 800,000 workers missing their first paycheque last week, while 380,000 workers have been furloughed, with the rest working without pay.
This afternoon will see the release of January’s US unemployment figures, which are expected to increase as furloughed workers are likely to be counted as unemployed.
Any poor unemployment data could reduce positive US dollar sentiment.
Thursday, 17th January 2019
10:00 EUR Consumer Price Index
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)