- UK redundancies soared in Q3 & unemployment rate jumped in September.
- However, GBP/USD held steady & EUR/GBP declined.
- FX has so far shrugged off Pfizer vaccine news, with little sign of a move from safe-havens such as the US Dollar into riskier assets such as the British Pound.
- Brexit remains in focus in another key week although there has been no reports of a breakthrough in the EU-UK trade talks.
GBP/USD SHRUGS OFF UK EMPLOYMENT DATA
According to the latest labor market data, UK redundancies hit the highest level on record in the July – September period. while unemployment hit a four year high in September. GBP/USD barely reacted, trading steadily around the 1.32 while the Pound actually advanced versus the Euro, pushing EUR/GBP lower.
BREXIT STILL IN FOCUS
UK Government was defeated on Monday in the House of Lords on its Internal Market Bill; the controversial bill which would have breached international law. The House of Commons will most likely reverse that defeat.The latest trade talks between the EU and the UK show few if any sign of a breakthrough. Optimism that a bare bones deal will be achieved remains.