Pound Holds Gains despite Rising Uncertainty; Jobs Report Eyed

Pound Holds Gains despite Rising Uncertainty; Jobs Report Eyed


The British pound held gains against major currencies despite the rising political uncertainty. Seven MPs have resigned from the Labour party in protest against Corbyn's leadership. They weren't satisfied at all with his approach to Brexit and anti-Semitism. On the other hand, Theresa May is still asking the help of the EU to save her Brexit agreement. Market participants await the January jobs report to be released. The GBPUSD is trading near $1.2920, and the GBPJPY is hovering near 143.00.


The dollar index which measures the greenback against a basket of major currencies was traded slightly higher during the Asian session to reach 96.94. Investors were seen fleeing the dollar safety on enhanced risk sentiment amid optimism over trade between China and the United States. Moreover, they are awaiting further signals on the latest economic performance and the path of interest rates. The EURUSD is trading above $1.13, and the USDJPY rose to a five-day high of 110.74.


Metals prices extended gains as the United States dollar and Treasury yields remained weak. The gold ounce rose to a ten-month high of $1328, the silver ounce traded at a high of $15.84, and palladium climbed to a new record high of $1490.


Oil prices settled higher for the fifth consecutive day on trade deal hopes. A trade deal between the largest two economies could boost the global economy and raise oil demand this year. Moreover, the ongoing turmoil in Venezuela is weighing on oil supplies. The West Texas Intermediate crude futures rose to a three-month high of $56.32, and Brent futures jumped to a three-month high of $66.81

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK Claimant Count Change (Jan) 12.3 20.8
9:30 UK Average Earnings Index +Bonus (Dec) 3.5% 3.4%
9:30 UK Unemployment Rate (Dec) 4.0% 4.0%
10:00 EU German ZEW Economic Sentiment (Feb) -14.1 -15.0
10:00 EU ZEW Economic Sentiment -18.2 -20.9



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