The key events today were the UK jobs report in the morning, while the BoC rate decision was the focus for the afternoon session. GBP has managed to recoup some ground in recent sessions, though much of this is down to the panic over ‘hard Brexit’ calming a little.
The recent data series has proved positive for the economy, and overall, today’s data added to this with the claimant count lower than expected and earnings ex-bonus also higher than expected. The unemployment rate was unchanged 4.9%. Cable once again challenged the resistance in the 1.2325-30 area, partially extending on the highs seen Tuesday, but plenty of sellers continue to trade ‘uncertainty’ and this is limiting any meaningful recovery.
EUR/GBP looks an easier sell in light of the ECB risk ahead, but once again, the extremes from yesterday have only modestly been breached as yet. EUR/USD has also pushed lower, though is finding it hard going ahead of the 1.0950 level. Pressure unrelenting though, with EUR/JPY sales also notable as USD/JPY has conceded ground also.
For the CAD, the growth and inflation forecasts were the focus of attention in today’s BoC, with very few expecting a move (lower) in rates. The downward revisions were no lower than expected, and this gave the CAD a strong bid, taking out 1.3050 bids, but still working its way through the bids sitting in front of 1.3000.
The DoE also reported a drawdown in crude, but output rose; WTI rising modestly but underpinning CAD strength despite the diminished correlation with oil. AUD continues to press on orders sitting in front of .7700 and NZD maintains a .7200 handle, so the USD is not getting it all its own way at present