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 Hang Seng Index looks set to extend gains beyond the 30,000 mark, hitting a fresh 20-month high. Will it succeed?
  • 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:
  • RT @FxWestwater: Australian Dollar Forecast: Jobs Report Fails to Inspire $AUDUSD Link:
  • The Nasdaq 100 index advanced 1.97% to an all-time high of 13,457, led by Alphabet (+5.36%), Amazon (+4.57%) and Microsoft (+3.65%).
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6% Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Full Time Employment Chg (DEC) Actual: 35.7K Previous: 84.2K
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6 Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Employment Change (DEC) Actual: 50K Expected: 50K Previous: 90.0K
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Heads Up:🇦🇺 Full Time Employment Chg (DEC) due at 00:30 GMT (15min) Previous: 84.2K
Pound Leads as Labor Growth Accelerates - GBP/USD at 7-month Highs

Pound Leads as Labor Growth Accelerates - GBP/USD at 7-month Highs

Christopher Vecchio, CFA, Senior Strategist

Talking Points

- Risk-appetite improves as Syrian tensions ease further.

- European economic data remains on the upswing; EUR not responding like GBP, though.

- No data on North American calendar today.

To receive this report in your inbox every morning, sign up for Christopher’s distribution list.










(vs USD)








Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.05% (-0.52%prior 5-days)


The excitement driving the commodity currency complex has seemingly waned over the past 24-hours, with the Australian Dollar turning negative against the US Dollar over the past several hours of trading. The European currencies have remained buoyant in the wake of the disappointing US NFP report released on Friday as well; though it is the British Pound who continues to impress.

Today’s batch of UK economic data was roundly positive, noted by the three-month Unemployment Rate ending July falling to 7.7%, below the forecasted figure of 7.8%. The GBPUSD rose to its highest level in seven-months on the news, while the EURGBP fell to its lowest level since January after the report.

British Pound optimism has been warranted in recent weeks as nearly every single economic data print since late-May has meshed with the notion that the Bank of England would remain steady on its monetary policy course and move towards normalizing stimulus – ending QE. The thresholds for normalizing policy – a 7.0% Unemployment or inflation holding above +2.5% y/y by mid-2015 – both appear to be within reach sooner than expected.

UK yields have been the primary support for the British Pound, with the UK 10-year yield trading above and around 3.000% over the past week. At this point in time – similar to the US Dollar’s plight with US Treasury yields so elevated before the Federal Reserve’s September 19 policy meeting – is that a near-term ceiling may be been reached.

Going forward, the British Pound remains a strong fundamental play so long as the BoE stays on the sidelines. Governor Mark Carney expressed his willingness to pursue additional QE if UK yields jump and begin to weigh on economic growth; and if the BoE believes that higher interest rates are unwarranted, the Pound may have trouble extending its gains much further without a period of consolidation/profit taking.

GBPUSD 5-minute Chart: September 11, 2013 Intraday

Pound_Leads_as_Labor_Growth_Accelerates_-_GBPUSD_at_7-month_Highs_body_Picture_1.png, Pound Leads as Labor Growth Accelerates - GBP/USD at 7-month Highs

Taking a look at European credit, slightly lower yields across the region – but for Portugal – have undercut the Euro on Wednesday marginally. The Italian 2-year note yield has decreased to 2.035% (-1.6-bps) while the Spanish 2-year note yield has decreased to 1.690% (-1.9-bps). Likewise, the Italian 10-year note yield has decreased to 4.510% (-1.9-bps) while the Spanish 10-year note yield has decreased to 4.469% (-3.1-bps); lower yields imply higher prices.

Read more: Yen Falls Back as Safety Demand Wanes after Chinese Data, Syrian ‘Progress’


There are no significant economic data due out during the North American trading session today.

See the DailyFX Economic Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators. Want the forecasts to appear right on your charts? Download the DailyFX News App.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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