The UK has released employment reports nice and early this morning, and it has revealed that regular pay growth has come in unchanged at 6.0 percent. The latest news means that the likelihood of a rate cut before the general election has been diminished.
Following this morning’s release, the pound has continued to hold its strength against both the euro and the dollar, with only a slight decline in the current market rates.
Looking ahead this week, in the UK the release Growth Domestic Product (GDP) will be closely watched. Growth in the UK month on month is expected to fall to 0 percent (from 0.4 percent).
Also set to be released is the Industrial Production in the Manufacturing sector, whereby markets are expecting a decline of 0.5 percent to -0.2 percent.
Markets will then shift their focus to the US later in the week to the Consumer Price Index, which will be closely watched as the FED continue to hold their hawkish stance on any potential rate cuts.
The FED will then announce their Interest Rate decision on Wednesday evening, which is widely expected to hold steady at 5.5 percent.
The recent news of President Macron’ss election call and PM Alexander De Croo’s resignation, has caused some economic uncertainty in the Eurozone.