British Pound Unlikely to Heed UK Jobless Claims Data

2016-09-14 06:34:00

Ilya Spivak, Head Strategist, APAC

Talking Points:

UK jobless claims unlikely to inspire strong British Pound response
Yen sinks, commodity Dollars rise as S&P 500 futures trade higher
Looming US data may limit follow-through on overnight momentum

UK jobless claims data headlines an otherwise quiet economic calendar in European trading hours. A small increase is expected, but the outcome seems unlikely to generate lasting follow-through from the British Pound considering its limited impact on the direction of near-term BOE monetary policy.

The Japanese Yen underperformed in overnight trade, with prices mirroring a rebound in S&P 500 futures and hinting at recovering risk appetite as the catalyst at work. Tellingly, the sentiment-linked Australian, Canadian and New Zealand Dollars proved to be best-supported.

A lull in high-profile event risk offers relatively few barriers to disrupt established momentum, hinting that overnight moves may carry forward in the hours ahead. The degree of follow-through may ultimately prove limited however as traders look ahead to top-tier US data on the horizon.

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Asia Session

GMT	CCY	EVENT	ACT	EXP	PREV
21:30	NZD	REINZ House Sales (YoY) (AUG)	-3.1%	-	-10.1%
22:45	NZD	BoP Current Account Balance (2Q)	-0.945b	-0.295b	1.184b
22:45	NZD	Current Account GDP Ratio YTD (2Q)	-2.9%	-2.6%	-3.1%
00:30	AUD	Westpac Consumer Conf Index (SEP)	101.4	-	101
00:30	AUD	Westpac Consumer Conf SA (MoM) (SEP)	0.3%	-	2.0%
02:00	JPY	Tokyo Condominium Sales (YoY) (AUG)	-24.7	-	-30.7%
04:30	JPY	Industrial Production (MoM) (JUL F)	-0.4%	-	0.0%
04:30	JPY	Industrial Production (YoY) (JUL F)	-4.2%	-	-3.8%
04:30	JPY	Capacity Utilization (MoM) (JUL)	0.6%	-	1.5%

European Session

GMT		CCY	EVENT	EXP	PREV	IMPACT
08:30	GBP		Claimant Count Rate (AUG)	2.2%	2.2%	Medium
08:30	GBP		Jobless Claims Change (AUG)	1.8k	-8.6k	Medium
08:30	GBP		Average Weekly Earnings (3M/YoY) (JUL)	2.1%	2.4%	Low
08:30	GBP		Weekly Earnings ex Bonus (3M/YoY) (JUL)	2.2%	2.3%	Low
08:30	GBP		ILO Unemployment Rate (3Mths) (JUL)	4.9%	4.9%	Low
08:30	GBP		Employment Change (3M/3M) (JUL)	171k	172k	Low
09:00	EUR		Eurozone Industrial Production (MoM) (JUL)	-1.0%	0.6%	Medium
09:00	EUR		Eurozone Industrial Production (YoY) (JUL)	-0.8%	0.4%	Medium
09:00	CHF		Credit Suisse ZEW Survey Expectations (SEP)	-	-2.8	Low