The UK unemployment rate was released at 4.1% this morning and although this was expected, it still showed an increase from its previous figure of 3.9%. This suggests the UK labour market shed 695,000 jobs between March and August with another 500,000 jobs forecast to be lost this Autumn which has put the Pound under continued pressure. The Internal Market Bill has been backed by Parliament although many senior Conservative MPs warned against introducing it. The bill will now undergo further scrutiny before next week’s final vote.
Eurozone industrial production came out slightly better than expected yesterday at 4.1% which has given the Euro some support across the board. With the European Central Bank optimistic about their economic forecasts, the Euro remains strong against both the Pound and Dollar. Both Eurozone and German ZEW economic sentiment figures are due at 10am which may cause some short-term volatility for the common currency.
The focus for the Dollar this week is on the Federal Reserve’s interest rate and policy statement on Wednesday. Although it is expected that interest rates will stay the same, the central bank’s updated economic forecasts will be set out which will give a good indication of how the US economy is performing. This afternoon, both US industrial production and the Empire State manufacturing index are due to be released which will be closely watched by the market.