Should We Keep an Eye on the UK Unemployment Rate?
20.04.2021
- European Currencies Remain Firm
- UK Unemployment Rate
Yesterday, a risk-off sentiment characterized by falling stock prices, a weaker dollar, and rising interest rates led to declines across all three major U.S. stock indices. The Nasdaq, in particular, fell nearly 1%, closing at 13,914 points—down 137 points from the previous day.Amid the spread of the novel coronavirus, the U.S. revised its travel advisories to classify 80% of the world’s countries as “travel ban level,” fueling concerns about the economic outlook.
In the foreign exchange market, European currencies are gaining momentum, with the euro/dollar rising to 1.206.The euro/yen pair is also trading near the upper end of its range at around 130.5. Additionally, the pound, another European currency, is performing strongly; the pound/yen pair rose by more than 100 pips yesterday and is currently attempting to reach a new high near 151.5.
Today, the UK unemployment rate and jobless claims, as well as Germany’s Producer Price Index, are scheduled for release at 15:00 European time. Once U.S. trading hours begin, Canada’s Housing Price Index is set to be released at 21:30. Additionally, New Zealand’s first-quarter Consumer Price Index is scheduled for release at 7:45 the following morning.We will carefully monitor how the pound—which has been on an upward trend since yesterday—reacts to today’s unemployment rate release, while comparing it to other currencies.
Author: Keisuke Sakurai
