The FX market remains range-bound as the US dollar holds highs; GBP struggles with weak employment despite fiscal reassurance, while AUD weakens on poor Chinese activity data and a cautious RBA.
Key Takeaways
- 1.The British Pound's relief rally from a fiscal policy 'u-turn' by potential Labour leadership is being dampened by the sharpest contraction in UK employment since 2020.
- 2.The Australian Dollar is underperforming due to significantly weaker than expected Chinese economic activity data and RBA minutes suggesting a policy pause.
- 3.Geopolitical tensions regarding Iran have seen a temporary reprieve after President Trump delayed strikes at the request of Gulf allies.
Table of Contents
- AUD/USD: Weak China growth & RBA pause weigh on Aussie
- DOES EMPLOYMENT DATA OVERSTATE UK LABOUR MARKET WEAKNESS?
- GBP: Fiscal policy "u-turn" provides relief for gilts & GBP
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Lee Hardman
Securities
GBPUSDAUDUSDUSDCNYUK Gilts
Themes
Geopolitical Tensions vs DiplomacyUK Political Risk & Fiscal Policy
Regions
EuropeAsia PacificNorth AmericaUnited KingdomChinaAustralia