Unemployment figures support sterling

It may not come as a huge surprise to regular readers that the pound has lost further ground this morning after lower than expected inflation figures yesterday.  However, some support for the pound this morning came in the form of better than expected unemployment figures.  This hasn’t given the pound enough strength to make any real gains, but has limited losses in trading today.

The ILO Unemployment rate released by the ‘National Statistics’ showed a fall from 8% last month to 7.8% this month.  Expectations were for the rate to remain unchanged, so the slight improvement has helped sterling.   It is however only a small improvement and unemployment still poses a threat to the fragile UK economy, therefore the effect appears likely to be short lived.  Sterling s currently trading up 0.12% vs. the US Dollar and down 0.15% vs. the euro.

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