Non-farm payrolls miss forecasts, pushing the greenback lower. Sterling has opened the week on the front foot, testing 1.2000 against the Euro for the first time since the pandemic began.
January 10, 2022
GBP/USD 1.3590 GBP/EUR 1.1990 EUR/USD 1.1334 USD/CAD 1.2630 EUR/CHF 1.0434 EUR/SEK 10.3022 EUR/NOK 10.0151 EUR/DKK 7.4380 USD/ILS 3.1158 AUD/USD 0.7189 NZD/USD 0.6771 USD/SGD 1.3548 USD/JPY 115.66 USD/CNH 6.3814 USD/INR 74.1250 EUR/ILS 3.5316 GBP/ILS 4.2325 USD/ZAR 15.6327
After leading G-10 gains last week, Sterling has opened on the front foot, reaching two-month highs against the US dollar and testing 1.2000 against the Euro for the first time since the pandemic began. Evidence that the recent wave of Omicron cases may be abating continues to support the pound, along with growing speculation that further interest rate rises may come as early as next month.
UK House prices rose 9.8% in 2021, the strongest pace since 2004. Halifax and Nationwide both expect growth to slow this year as rising utility prices, taxes and interest rates will likely suppress demand.EUR
The Euro has lost traction against the Dollar this morning after closing in positive territory on Friday, following broad dollar weakness. The pair is down 0.3%, around 1.1325 as we print.
Euro Area inflation remained unchanged on Friday, to print at 2.6%. Retail sales for November surged 1% against expectations for a decline, despite ongoing coronavirus restrictions across the bloc. Germany’s 10-year Bund yield rose more than 70% last week as inflation concerns continue to grow. The yield is on the edge of turning positive for the first time since May 2019.USD
The Dollar declined on Friday, to close the week down 0.5% as Non-farm payrolls missed expectations. 199,000 jobs were added in December, a stark difference to the 400,000 forecast and the lowest number since December 2020. The Unemployment rate however improved noticeably, falling to 3.9% from 4.2%.
US futures edged higher after the S&P posted the worst start to the year since 2016. Nasdaq 100 and S&P 500 futures gained 0.4% and 0.1% respectively. The DXY is trading 0.1% higher this morning.ASIA/PACIFIC
Asian stocks edged higher this morning, with the Hang Seng adding 1% as technology shares rebounded. China has recorded its first cases of Omicron within the community, whilst governments in Taiwan and Vietnam prepare to intensify Covid restrictions as Lunar New Year festivities approach.ILS
USDILS has opened the week up 0.4%, to trade just below the 3.1200 level at time of writing.Data & EventsEuro Area - Unemployment Rate
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