GBP and stocks gain further on more upbeat news

Summary:

• GBPUSD set for biggest 2-day gain in a decade

• CAD jumps as jobs data beats forecasts

• Indices at to recent gains on trade hopes

• Bitcoin leaves bullish channel

The biggest mover on the day in FX markets has once more been the pound with further gains seen as hopes rise that the UK and EU are closing in on a new Brexit deal. The GBPUSD rate is back near the $1.27 handle after rallying almost 500 pips in the last 2 sessions and there have only been 3 larger two-day advances in the past 30 years; Dec 2008, Oct 2007 and Sep 1992 following black Wednesday. 

Elsewhere, there’s been a clear move higher seen in the Canadian dollar  this afternoon with the Loonie jumping across the board and second only to GBP on the day in G10 space after the release of the latest employment figures. While the headline reading was a little lower than last time out it was still far better than expected and the composition of jobs was also pleasing with full-time roles accounting entirely for the overall gain as part-time roles actually decreased. The data was as follows:

• Canadian employment change: 53.7k vs 7.5k Exp. Prior: +81.1k 

• Full-time roles: +70k

• Part-time roles: -16.3k

• Unemployment rate: 5.5% vs 5.7% Exp.

Indices are enjoying a push higher into the weekend with another tweet from US president Trump talking up the prospects of a deal with China boosting sentiment. Trump has been particularly bullish on the latest round of negotiations and expectations are high ahead of his meeting with Vice Premier Liu He later this evening.   

Our latest crypto newsletter focuses on Bitcoin as the largest cryptocurrency leaves its bullish channel. The analysis can be read in full here.