Joblessness in the United Kingdom in June came in unchanged from the month prior at 4.7%, we learned this morning. After a quiet Monday, sterling was on the rise against both the euro and the US dollar immediately following that news.
Perhaps this rise had more to do with the average earnings report. Excluding bonuses, British workers secured an average 5% annualised pay rise in the three months to June, in line with expectations. However, if you include bonuses, the average increase was only 4.6% – well below the predicted 5%.
A steady and tentatively optimistic start to the week saw the price of gold fall in light trading. The US dollar made the largest inroads among major currencies yesterday and was boosted by both news that the trade deadline with China would be extended and the hope that talks between Donald Trump and Vladimir Putin would produce genuine progress.
In what was hardly a positive indicator for the jobs market, data from KPMG and the Recruitment & Employment Confederation (REC) showed recruitment activity was stuck near a two-year low last month. A majority of recruiters are continuing to see hiring contract amid an uncertain economic outlook and higher costs for businesses.
Overnight, the Reserve Bank of Australia decided to cut interest rates from 3.85% to 3.6%. That decision came in line with market expectations. The Australian dollar weakened by a slim margin against the pound and the US dollar in response.
The American political scene was rocked yesterday by reports that President Trump is preparing to send the National Guard into Washington DC to tackle crime. The decision is certainly an extreme one and mirrors his move earlier this summer to send the National Guard to Los Angeles to quell protests.
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