ff for the risk-sensitive assets. The cross has witnessed a steep fall after failing to sustain above the 162.00 hurdle and is expected to continue to remain on the edge ahead of the US employment data.
As per the consensus, the UK Office for National Statistics will report the Claimant Count Change data with a decline of 11.4k vs. the prior addition of a 6.3k. While the Unemployment Rate will land unchanged at 3.6%. The catalyst which will be worth scrutiny is the Average Earnings data, which is seen higher at 5.3% vs. the prior release of 5.2%.
Price pressures in the UK economy have not witnessed a peak yet due to the unavailability of exhaustion signals. And, in order to offset the impact of higher payouts due to inflation-adjusted necessities and durable goods, households need higher paychecks. Stagnant growth in the labor cost data is a reason for worry for the Bank of England policymakers.
On Friday, Deputy Governor Dave Ramsden warned that UK's energy support package represents a very significant fiscal intervention, which can be thought of as a shock, as reported by Reuters. Meanwhile, yen bulls are performing relatively better despite the escalating geopolitical tensions between Japan and North Korea. The statement from North Korean leader Kim stated that their administration need not have a dialogue with the enemy and the former will continue to strengthen its nuclear operations ahead. In response to North Korean military activities, Japan, South Korea, and the US have performed military drills.