Early this morning the UK released their Unemployment figures where It was reported that the amount of people in the UK that are unemployed but actively seeking employment stayed the same at 4.2%.
Figures also revealed that wage growth has declined to 6.6%, which is still much higher than the rate of inflation in the UK. These figures could potentially link to the amount of strike days in November, which saw the lowest number of strike days in 18 months.
Elsewhere this morning, Germany released their Consumer Price Index which came in at 3.8% which markets had expected. This will be followed later by the German ZEW Business Confidence report.
Looking ahead this week, markets will keep an eye on the UK’s inflation report which is due for release tomorrow morning. Markets expect a minor decline to 3.8%, down from 3.9%. Any upside movement in this could result in some market movement for the pound.
Due to the US national holiday yesterday, there was no economic data being released with the first key data for the US coming tomorrow.
Looking at the latest movements in the currency market, the pound has somewhat flatlined against both the euro and the dollar with no real movements. However, as the week goes on markets expect some volatility to occur.