FX Updates
Stable Market Minute - 5th January 2026: Inflation and Employment Data in Focus This Week
Catch up on all the economic news you need to know in under a minute - the time it takes to make a single-filling sandwich.
Watch Alistair's video update here
The currency markets began the week largely unaffected by recent geopolitical events, with GBP/USD trading at 1.3435, GBP/EUR at 1.15, and EUR/USD at 1.1680. As the US's weekend involvement in Venezuela left the markets relatively unscathed, precious metals saw a surge, with gold rising by 2.3% and silver nearly 5%. Crude oil held steady at around $57 per barrel, maintaining its Friday levels.
This week promises to be bustling with economic activity, particularly on Wednesday, which will bring significant data releases. European inflation figures are anticipated, following a previous slight uptick across the Eurozone. This development could stifle any discussions about potential interest rate cuts, as rising inflation often leads to tighter monetary policies to control economic overheating.
In the US, Wednesday will also reveal employment change data from December. Last week, jobless claims showed a decrease of 16,000, indicating a positive trend in the job market. This reduction sets the stage for Friday’s much-awaited non-farm payroll data, which will provide further insights into the employment landscape.
The interplay between inflation and employment figures will be crucial for market watchers, as these indicators can significantly influence economic policies and investor sentiment. Stay tuned for more updates as the week unfolds.