Markets flat ahead of FOMC

A slew of UK data weighed on the UK's sterling, while the euro continues to fall amid political uncertainty

By Nadia Elbilassy | @Nadia Elbilassy | 11 June 2024

Market open
  • GBP/USD remained flat near 1.272 after disappointing UK data, including a higher Claimant Count Change of 50.4K vs. 10.2K expected.

  • UK average earnings index rose to 5.9% vs. 5.7% expected; unemployment rate increased to 4.4% from 4.3%.

  • Gold prices hovered around $2,306, pressured by China's halt in gold purchases and anticipation of Fed announcements.

In currencies

The GBP/USD was flat hovering close to 1.272, after a slew of disappointing UK data including the Claimant Count Change which shows the change in the number of people claiming unemployment related benefits at 50.4K vs 10.2K and 8.4K previous.

Additionally, the average earnings index rose to 5.9% vs 5.7% expected, while the unemployment rate rose 4.4% from 4.3% expected and previous.

The EUR/USD pair has been trending downward, reaching 1.0749, due to political uncertainty and the European Central Bank beginning its rate cut series amid an uncertain outlook.

In Commodities

Oil prices dipped on Tuesday as investors awaited key U.S. inflation data and the Federal Reserve's policy meeting results to better understand future inflation trends and their impact on fuel demand.

Brent crude futures had dropped 11 cents to $81.34 per barrel, while WTI was steady near $77.37.

Gold prices remained stagnant ahead of key announcements and the Fed's dot plot on Wednesday, while China's recent decision to halt gold purchases continued to exert pressure. Prices hovered around $2,306.