GBP news and analysis:
- Jackson Hole: A potential catalyst or will it prove insufficient for the markets?
- Brexit’s growth challenges persist as job vacancies in the transport sector continue to cause supply chain delays
- In the United Kingdom, the number of Covid cases is rising
Focus on Jackson Hole and narrowing timelines
If there is no significant risk of events from the UK other than PMI, we will turn our attention to the US, where there has been a significant gathering for this year’s Jackson Hole Economic Symposium, which is virtually back in the light of the ongoing pandemic.
Market participants looked forward to seeing whether the Federal Reserve Committee believed that the labor market had made significant progress towards meeting the Fed’s targets, and finally announced a date by which the purchase of stimulus assets could be slowed.
But the Fed reiterated its focus on data, as Powell chose to stick to the narrative it had delivered so far – inflation is temporary and needs to be seen more in the job market. The main set of employment data in the form non-agricultural payroll calculations (NFP) should take place next Friday and give a better idea of further progress in the labor market. Therefore, the specifics of restricting developments must be expected in September FOMC meeting or even later.
Next week’s economic data
For all data releases and events entering the market, see DailyFX economic calendar
GBP / USD does not show a real bias, as the “wait and see” approach took over most of the larger couples before Jerome Powell’s performance at the Jackson Hole event on Friday.
The chart was compiled by Richard Snow, IG
Vacancies in the transport sector continue to cause supply chain delays
Retailers, restaurants and the fast-growing consumer goods (FMCG) industries have delayed new orders due to a shortage of truck drivers in the UK. The main reasons for the significant decline in drivers are: European drivers who go home during the pandemic and do not return, inadequate working conditions and wages, increased delays and costs associated with Brexit, retirement and the lack of young people in the industry. The economic impact of the shortage is affecting the pound, and many are raising additional concerns about transport capacity as the Christmas sales season approaches.
The Delta variant continues to spread across the UK as residents enjoy life after a difficult closure. Growing concerns could lead to the reintroduction of restrictions and the UK Government is monitoring the situation.
United Kingdom: new cases of Covid
– Written by Richard Snow for DailyFX.com
Connect and follow Richard on Twitter: @RichardSnowFX