News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The British Pound may continue gaining ground against its haven-associated counterparts in the near term. However, the currency may give up gained ground against the New Zealand Dollar.Get your $GBP market update from @DanielGMoss here:
  • Not the most common of the Dollar-based majors, but $NZDUSD has tentatively broken its persistent bull trend while net spec futures positioning (COT) hit its highest level since May 2018
  • 🇨🇳 FDI (YTD) YoY (DEC) Actual: 6.2% Previous: 6.3%
  • Wall Street Futures Update: Dow Jones (+0.13%) S&P 500 (+0.21%) Nasdaq 100 (+0.43%) [delayed] -BBG
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here:
  • Asia-Pacific stocks look set to trade higher after US Treasury secretary nominee Janet Yellen showed her support to Biden’s US$ 1.9 trillion fiscal stimulus plan - a boost to energy, industrial and information technology sectors in particular.
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your #ASEAN currencies market update from @ddubrovskyFX here:
  • Heads Up:🇺🇸 Joe Biden's Inauguration due at 00:00 GMT (15min)
  • Heads Up:🇦🇺 Westpac Consumer Confidence Index (JAN) due at 23:30 GMT (15min) Previous: 112
  • 6 out of 9 Dow Jones sectors advanced on Tue, with 56.7% of the index’s constituents closing in the green. Energy (+2.63%), industrials (+1.32%) and information technology (+0.91%) were among the best performers, whereas consumer staples (-0.90%) trailed behind.
UK Earnings Data May Accelerate Slide in British Pound

UK Earnings Data May Accelerate Slide in British Pound

Martin Essex, MSTA, Analyst

Talking Points

- UK data due at 0830 GMT today are expected to show earnings continuing to increase at less than the rate of inflation.

- That could lead to weaker economic growth as consumers buy less, reducing the need for tighter monetary policy and keeping the British Pound under downward pressure.

Check out our GBP Trading Guide: it’s free and has been updated for the third quarter of 2017

Official data to be released at 0830 GMT today are expected to show that earnings continue to increase at less than the rate of inflation in the UK, potentially reducing consumer spending and the overall growth of the economy in the third quarter. That would ease the pressure on the Bank of England to tighten monetary policy and likely keep the British Pound on its current path downwards.

As the chart below shows, the Pound has been sliding against the US Dollar, as well as many other currencies, throughout August. That downtrend gathered pace yesterday as official data showed that headline inflation remained at 2.6% year/year in July rather than increasing to 2.7% as economists had expected. The core rate also stayed where it was, at 2.4%, instead of rising as predicted. You can read our report on the UK inflation figures here.

Chart: GBPUSD One-Hour Timeframe (August 2017)

UK Earnings Data May Accelerate Slide in British Pound

Chart by IG

This session, official figures to be released at 0830 GMT are expected to show that average weekly earnings rose by a same-again 1.8%, below the 2.6% inflation rate and therefore reducing consumers’ spending power. So, despite pressure on the Bank of England’s monetary policy committee to tighten UK monetary conditions as inflation remains well above its 2.0% target, the central bank is likely to hold off for many more months for fear of slowing the economy still more.

Meanwhile, separate figures are expected to show that the UK unemployment rate remained at 4.5% while employment rose by 97,000, down from the previous 175,000 increase. The DailyFX European team discussed this and other issues yesterday in our regular roundtable. If you missed it you can listen to it here.

From a technical perspective, GBPUSD should have some support at the 1.2810 low touched on July 12 and the 14-day relative strength index is currently close to – but not yet in – oversold territory. As for sentiment, the latest IG Client Sentiment data show that traders are netlong, suggesting GBPUSD may continue to fall. Traders are further netlong than Monday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bearish contrarian trading bias.

If you’re free you can listen in here to my live webinar at 0815 GMT analyzing the earnings and employment figures before and after they’re released. A full list of the numbers expected is on the DailyFX economic calendar.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at

Follow Martin on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.