Sterling broadly held onto Monday’s gains as Tuesday got underway, Michel Barnier’s pound-whisperer act sending the currency to multi-week peaks.
The EU’s chief negotiator had said that a first stage agreement within six or eight weeks was a ‘realistic’ prospect, something that sent sterling – which recently has jumped on far, far less – rocketing higher against the dollar and the euro. Tuesday has seen the pound continue that rise against the greenback, with cable pushing up 0.3% to cross $1.307 for the first time in just shy of 6 weeks, though against the euro it was less excitable, sitting flat at €1.123.
If the currency wants to hold onto that growth, however, then it needs to clear a UK jobs report-shaped hurdle. Analysts are expecting wage growth to remain at a 2018 low of 2.4% (including bonuses), with the unemployment rate steady at 4.0% and the claimant count change rising from 6.2k to 6.9k.
As for the FTSE, much like on Monday the pound’s gains prevented it from joining in with the – admittedly very mild – growth seen by its eurozone peers. The UK index was down 0.3% and back at 7260, while the DAX nudged back above 12000 with a 0.1%, and the CAC struck 5280 after climbing 0.2%.
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