In May 2021, Royal Dutch Shell lost a landmark court case which ruled that the energy giant must bring its emissions in line with the Paris Agreement. Shell had already planned to become net-zero business by 2050, but the ruling means they must slash emissions faster and harder.
A positive UK Markit services PMI could provide the pound with support
Easing Eurozone inflation could weigh on the euro
US jobs data in focus
Stronger UK services PMI could bolster the pound
A strong UK services PMI could cause the pound to rebound this morning after weaker-than-forecast construction PMI dampened demand for the currency on Thursday.
As the UK’s services sector accounts for over 70% of total GDP, an improved reading for December (as forecast) would be beneficial for the pound.
The gauge is expected to increase from 50.4 to 50.7. While this isn’t a substantial improvement, it would take the figure further away from the 50 mark separating growth from contraction.
Euro could dip on falling inflation
The main catalyst for euro movement today is likely to be the Eurozone’s consumer price index.
CPI is expected to dip from 2.0% to 1.8%, with core inflation holding steady at 1.0%.
As slowing inflation is unlikely to encourage the European Central Bank (ECB) to adopt a more hawkish approach to monetary policy, the euro could dip if the results match forecasts.
US non-farm payrolls data ahead
This afternoon sees a run of US data releases, including the nation’s services/composite PMIs and the always-influential non-farm payrolls report.
Sturdy jobs growth, low unemployment and strong average earnings figures would be US dollar-supportive. However, if any of these areas disappoint we may see the US dollar come under pressure before the weekend.
Friday, 4th January 2019
08:55 EUR German unemployment change
09:30 GBP Markit services PMI
10:00 EUR Eurozone consumer price index
13:30 CAD Unemployment rate
13:30 USD Change in non-farm payrolls
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)