Analysts at Rabobank suggest that if the Bank of England is going to hike rates this year better data will be needed to lay the groundwork and today, the market can expect the release of the UK March labour data to confirm a low unemployment rates, most likely at 4.2%.
Key Quotes
“Surveys are warning of a mixed picture from earnings data. Even if UK data are supportive for the pound, political news could be a concern for investors. Yesterday the EU warned that time was running out to seal a Brexit deal this autumn. The EU are hoping that a deal will be struck by October to allow all EU parliaments time to ratify the deal. It is hoped that the UK will be able to demonstrate by the EU leaders’ summit in June 28-29 how it will deal with the N. Ireland border. As it stands the UK government is deeply divided by PM May’s customs partnership proposal and the alternative ‘max fac’ plan.”
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