Market Update: Market Movements Amid Trump’s Inauguration and UK Employment Data

The pound surged amid Trump’s inauguration, while UK unemployment hit 4.4%. Stay ahead with key insights on wage growth and market trends.

Yesterday saw limited activity in the financial markets, with the primary focus being the inauguration of President Donald Trump. His decision to invite high-profile business leaders underscored his administration’s commitment to economic growth, private sector collaboration, and fostering innovation, job creation, and global competitiveness.

Currency Market Reactions

Contrary to market expectations, the British pound surged against the US dollar yesterday afternoon, gaining 130 points by 4 pm. This movement reflected a positive market reaction to political developments, despite ongoing uncertainties.

However, while the pound showed resilience against the dollar, it continued to face downward pressure against the euro, highlighting the complex dynamics shaping global exchange rates.

UK Employment Figures and Wage Growth

This morning, attention turned to the release of UK employment data. While projections suggested no change in the ILO Unemployment Rate, the actual figures came in at 4.4%.

Additionally, the Office for National Statistics (ONS) reported that both basic pay (excluding bonuses) and average weekly earnings grew at an annual rate of 5.6% during the three months leading up to November. This suggests real wage growth, which could influence future consumer spending and policy decisions.

Market Outlook: What’s Next?

Market movements this week are likely to be shaped by President Trump’s early days in office, as well as ongoing economic releases. The upcoming January flash PMIs for major advanced economies and further UK labour market statistics will be key data points to watch.

What This Means for You

Navigating market volatility requires strategic insights. If you want to understand how these trends affect your business or explore ways to capitalise on currency movements, our experts at Qumoney are here to help. Get in touch today for tailored financial guidance.

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