There were no major data releases from the UK on Friday. Despite recent incline in Sterling, analysts believe this is only of a short-term basis. A number of major banks forecast sharp falls for sterling over the next year in their 2016 outlooks this week, Morgan Stanley predicting a fall to $1.40 in a year's time and Deutsche Bank sticking with an earlier forecast of $1.27 for 2016. Some of that is due to concerns over a vote on Britain's membership of the European Union expected sometime next year or in 2017 that has raised the temperature on debate over some of the country's macroeconomic weaknesses.
US session was marked by
NFP and
Trade Balance figures.
The goods and services deficit was $43.9 billion in October, up $1.4 billion from $42.5 billion in September, revised. October exports were $184.1 billion, $2.7 billion less than September exports. October imports were $228.0 billion, $1.3 billion less than September imports.
USD was pushed higher after 211,000 increase in payrolls which followed a 298,000 gain in October that was bigger than previously estimated, a Labor Department report showed Friday. The median forecast called for a 20001,000 advance. The jobless rate held at a more than seven-year low of 5%.Employment in November was spurred by the biggest increase in construction hiring since January 2014. Retailers, health-care providers and leisure and hospitality companies added jobs at a healthy, but slower pace than in October.
With no major data releases both from UK and USA on Monday, we can expect a bit less volatile session, though markets will still be weighing on recent UK figures as well as NFP data, and be cautious ahead of Thursday's BoE rate decision that should probably set the direction for Sterling, long-term looking.
