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Jobs Day | Carney Comments Drives Sterling Lower
Published August 3, 2018
The US Labor Department issues jobs numbers for July this morning, with economists predicting a 193,000 rise in non-farm payrolls for the month. Unemployment is seen ticking down to 3.9% and average hourly earnings repeating June’s 2.7%. The rate of pay increases is likely to be of most interest to investors in relation to the Federal Reserve calling the economy “strong” for the first time since 2006.
The resulting Bank of England rate hike yesterday has led to increased pressure on the pound, as Governor Mark Carney offered opinion back into the Brexit debate, saying the chance of the UK dropping out of the European Union is “uncomfortably high.” The pound weakened below $1.30 as he spoke on BBC Radio this morning.
China’s yuan sank against the dollar this morning, trading as low as 6.8965. The currency has been under pressure due to the trade standoff with the US and is set for an eighth week of declines. Officials in the country are looking for monetary policy to do more to support small and medium enterprises.
A barrel of West Texas Intermediate was trading at $68.96 today, as the commodity was balanced between trade concerns and some signs of tightness in the market. Despite President Trump’s efforts to isolate Iran, China said that it will not cut oil imports from the country.