Wednesday provided sterling with an opportunity to recover many of its losses from the previous day, as UK unemployment fell to 5.4%, the lowest level seen since 2008. The only slight negativity was that the average earnings increase, although 3%, was below expectations. Sterling was then boosted even further against the US dollar on the release of poor US economic data which saw sterling reaching its highest level in three weeks against the US dollar.
A quiet day for sterling today, with little economic data being released from the UK, means that attention will turn to the US, where inflation data will be released. This is expected to show a deepening of the recent negative trend for the US, so sterling could make further gains if this trend continues.
Keep a close eye on sterling – if you are looking to buy or sell, we suggest contacting your trader now for live rates, the latest news and to plan appropriate currency purchasing strategies.