Currency Note Sterling

Fall in unemployment boosts sterling

By Ricky Bean June 12th, 2014

Following a mixed week in which it has struggled against the US dollar, sterling performed well yesterday, gaining ground across the board as UK unemployment in April fell to 6.6%. This was a greater-than-expected fall which sees the lowest level of unemployment in 5 years and well below the 7% threshold originally mandated by the Bank of England as a time for increasing interest rates. The unemployment rate continues to be an important indicator of the strength of the UK economy and was a key driver in sterling’s rally against the US dollar following a disappointing run.

The UK is relatively quiet on the economic data front today, with interest turned towards the US, where retail sales data and unemployment claims will be released this afternoon.