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Daily Review 20.10.2016

No ‘Brexit effect’ as UK’s employment data hits record high

The labor market in UK shrugged off any aftermath from the country’s decision to leave the European Union last June and remained robust for three-month period between June-August, according to the latest data reported by the Office for National Statistics on Wednesday.

UK’s employment rate was steady at its highest level since 1971 at 74.5 per cent as jobs created in three months to August registered at 31.81 million, with 3.45 million workers being non-UK nationals. The data showed that there are 106 000 more jobs created than the previous quarter and 560 000 more than the previous year.

Meanwhile, the unemployment record remained unchanged at its record low of 4.9 per cent despite a slight surge in the number of unemployed people by 100000 between two quarters.

The average earnings, however, posted 2.3 per cent in the year to August, higher than the analysts’ expectations of just 2.1 per cent.

With the news, the sterling touched an eight-day high and was up 0.19 per cent at 1.2324 versus the US dollar while UK’s FTSE futures moved back below 7000 after losing 22 points in yesterday’s session.

Dollar tumbles amid surging oil prices, lower optimism on rate hike

The US dollar lost ground on Wednesday trading as oil prices finished in the green zone and as investors searched for further clues about the possible interest rate hike by the Federal Reserve.

US crude futures advanced 3.18 per cent and closed at $51.89 barrel while chances on the increase of US’ borrowing cost have stagnated due to mixed economic data.

In line with this, the dollar index, which measured the greenback against a basket of six major currencies, closed 0.2 per cent down at 97.876.

The Canadian dollar strengthened against the greenback and was last trading at 1.3013. Sterling added 0.19 per cent at 1.2324 while the Japanese yen finished at 104.13.

The dollar settled down 0.5 and 0.8 per cent against Mexican peso and Russian ruble respectively.

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