"If the Monetary Policy Committee was waiting for the employment data before making up its collective mind over tightening monetary policy, yesterday’s November report should have eased any concerns.

The unemployment rate fell to 4.2% from 4.3% in October.

Despite the fall in the unemployment rate, unfilled vacancies also reached a record high. The end of the Government’s furlough scheme appears to have had negligible effect on hiring, with 257k new jobs created, the single biggest monthly rise since 2014.

One of the concerns that had been voiced by members of the MPC was what effect the removal of the furlough scheme would have. It was feared that many firms were retaining staff simply because of the support they were receiving, but those fears now appear to be unfounded.

While market expectations of a rise in interest rates would have increased, the fears of the effect of the Omicron Variant on output lingers.

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Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.