Solid UK Labour Report, NZD Outperforms - A...>

FOREX: Solid UK Labour Report, NZD Outperforms

- A fairly low key European morning saw the USD moderately weaker across the

board, NZD outperformed, whilst solid UK jobs data boosted GBP.

- NZD benefitted overnight from the RBNZ's sectoral inflation model accelerating

to a 7-Year high of 1.7% Y/Y in Q2, after the official Q2 CPI print provided a

modest miss against exp. (although it matched the RBNZ's MPS projections).

NZDUSD squeezed on react to $0.6841 and has largely consolidated gains through

Europe to remain the best performing currency in G10.

- The UK Labour report was solid, vacancies hit a record high further cementing

the case for an August rate hike by the MPC. Improved revisions to average

weekly earnings with added support from an uptick in employment change, lifted

GBP to react highs of $1.3269.

- With The USD weaker across the board, EUR, CHF, CAD & AUD registered modest

gains, albeit tied to narrow ranges. JPY crosses hold firm, EURJPY flirts with

the 200-dma (Y131.93), NZDJPY the 100-dma (Y76.72).

- Focus turns to Fed Powell's semi-annual testimony from 1400GMT.