06/07/2018 - Merkel Not Convinced With UK Proposal

GBP

A spokeswoman for British Prime Minister Theresa May said on Thursday it was wrong to suggest that a new Brexit customs proposal would prevent Britain from striking a new trade deal with the United States. However German Chancellor Angela Merkel’s government is unconvinced by U.K. Prime Minister Theresa May’s latest attempt at a compromise arrangement for customs after Brexit, seeing it as unworkable, according to a person familiar with the German stance. Further compounding Mays difficult position were reports yesterday that The UK Brexit minister David Davis has branded prime minister Theresa May's latest plan for a 'facilitated customs arrangement' with the EU as "unworkable".

Mark Carney said recent data had given him "greater confidence" that weak first-quarter growth "was largely due to the weather" and that household spending sentiment had "bounced back strongly".

In a speech at the Northern Powerhouse Summit in Newcastle, Mr Carney said: "Overall, recent domestic data suggest the economy is evolving largely in line with the May Inflation Report projections, which see demand growing at rates slightly above those of supply and domestic cost pressures building." The pound only edged up slightly against the dollar following his remarks.

USD

American businesses added 177,000 workers in June, a sign of health and resilience for the U.S. labor market and economy Payroll processor ADP said Thursday that hiring was led by employers with more than 50 workers, accounting for 84 percent of the job growth. The education and health sector led the gains by adding 46,000 workers. Leisure and hospitality added 33,000 jobs, as did professional and business services. The job growth of the past several years reflects an economic expansion that is now entering its tenth year. But the hiring gains are now creating a challenge for employers to find capable workers.

Key Announcements

13:30 – USD: US Non-Farm payrolls Expected to fall to 195K from 223K
13:30 – USD: US Unemployment Rate Expected to remain Unchanged at 3.8%