Money News Overview 4th October: Sterling on the defensive

In the United States, initial weekly unemployment claims increased to 225k from 219k (expected to be 220k), allowing the dollar to continue to advance yesterday.

Sterling was also under some downward pressure following remarks by BoE Governor Bailey. He suggested that the Bank of England may become more aggressive its rate-cutting policies. Markets have fully priced in a rate cut in November.

Looking ahead, the most notable release of the day will be the September US job market data.

The consensus is that payrolls will increase by 140k, with the unemployment rate continuing at 4.2% and average wages growth at +3.8%.

The numbers indicate some event risk for the dollar. Elsewhere, in the UK, statements by BoE Chief Economist Pill may attract some notice

For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.