Further jobs rebound in the US

The main currencies are approaching the end of the week still trading in the tight ranges that have prevailed since Monday, with the euro at around $1.12 and 90p against the dollar and sterling respectively and the pound hovering just below $1.25 level against the US currency. Core bond yields were little changed yesterday, while equity markets chalked up some further gains

Employment in the US rose again in June, increasing by 4.8 million as more people returned to work as the economy re-opened. This brings the cumulative gain over the two months May and June to 7.5m, following a cumulative decline of 22m in March-April

In tandem with the rebound in jobs, the unemployment rate in the US fell further last month to 11.1%, down from its most recent peak of almost 15% in April but still very elevated relative to its multi-decade low of 3.5% as recently as February last

The unemployment rate in the Euro Area nudged up to 7.4% in May from 7.3% the previous month and a low of 7.1% in March, with the widespread use of various support schemes helping to limit the rise in joblessness to date despite the very sharp fall in economic activity that has occurred

Following the conclusion of this week’s round of negotiations on a post-Brexit relationship yesterday, the UK’s David Frost said the talks with the EU were “comprehensive and useful (but) they have also underlined the significant differences that still remain between us on a number of important issues”, adding that “we remain committed to working hard to find an early understanding on the principles underlying an agreement out of the intensified talks process during July”

Data due today includes services PMIs in the Euro Area and the UK