Foreign Exchange Daily Market Update 15/03/2017

Wed, March 15, 2017

Pound Declines As U.K. Jobless Rate Falls

The U.K. jobless rate fell to its lowest in more than 40 years but Britons are seeing their wages go nowhere.

Unemployment unanticipatedly fell to 4.7% in the three months through January, the lowest rate since 1975. The number of people in work rose by 92,000 to 31.9 million, the largest increase since last year.

The U.K. economy has challenged forecasts of doom since the Brexit vote, expanding at a healthy 0.7% at the end of 2016, but the latest data show cost pressures in the labour market remain subdued.

The figures may emphasize belief that the first increase in interest rates since 2007 continues to be a long way off. BOE officials meeting this week are forecasted to keep the benchmark rate at a record-low 0.25%, with traders pricing in less than a 25% chance of a rise in 2017.

The Pound fell slightly after this data against both the Dollar and the Euro to 1.2189 and 1.1469.

Data to look out for today.

09:30: GBP Unemployment rate

09:30: GBP UK Jobless Claims

12:30: USD Consumer Price Index

12:30: USD Advance Retail Sales

19:00: USD FOMC Rate Decision

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PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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