21 Jan 2015
GBP better bid going into the labour market report – KBC
FXStreet (Barcelona) - According to KBC Bank, today’s news flow might be constructive for GBP, anticipating a expected rise in earnings and employment to be support sterling.
Key Quotes
“Today, the calendar in the UK contains quite some interesting features with the UK labour market data and the Minutes of the January BoE meeting. A further decline of the jobless claims and a further rise employment is expected. Also the earnings are expected to rise further.”
“If this scenario would materialize, it can give sterling additional support, especially against a euro which stays under pressure going into the ECB decision.”
“The BoE minutes should be rather balanced. The bank probably won’t become more specific on the timing of a first rate hike given the recent sharp decline in inflation. Even so, the scenario of a start of gradual rate hikes will probably be left open.”
“To summarize, today’s news flow might be constructive for sterling. A test of the 0.7595 correction low in EUR/GBP might be on the cards.”
Key Quotes
“Today, the calendar in the UK contains quite some interesting features with the UK labour market data and the Minutes of the January BoE meeting. A further decline of the jobless claims and a further rise employment is expected. Also the earnings are expected to rise further.”
“If this scenario would materialize, it can give sterling additional support, especially against a euro which stays under pressure going into the ECB decision.”
“The BoE minutes should be rather balanced. The bank probably won’t become more specific on the timing of a first rate hike given the recent sharp decline in inflation. Even so, the scenario of a start of gradual rate hikes will probably be left open.”
“To summarize, today’s news flow might be constructive for sterling. A test of the 0.7595 correction low in EUR/GBP might be on the cards.”