Data releases out of the UK and Eurozone today were positive but have not stopped Sterling and the Euro from weakening against the Dollar.
UK labour market data continue to be robust, with the economy having created almost 180,000 jobs in the three months to February and the number of unemployed having fallen to its lowest level since 1975. Importantly, growth in weekly wages continued to outstrip CPI-inflation. But GBP/USD is still down to 1.305 – the lower end of its multi-week 1.30-1.33 range – from 1.31 this morning following reports that, perhaps unsurprisingly, Brexit talks between Prime Minister May and the opposition Labour Party had stalled. The UK has until 31 October to agree on a Brexit deal or a Plan B so the sense of urgency is perhaps less acute then it was a few weeks ago but markets are still seemingly very sensitive to Brexit-related news.
