Currency Note Sterling

Is UK unemployment falling?

By Smart Currency August 14th, 2013

Yesterday was, for the most, another fairly flat day for sterling, before picking up speed against the euro later in the day to reach its highest level since early July. This improvement has proved to be short lived but highlighted how quickly exchange rates can move and how you have to be prepared and able to react quickly. Consumer Price Index data released in the morning did little to sterling rates, as the results came out in line with pre-release predictions and in spite of the importance laid on inflation in last week’s comments from Governor Mark Carney. Today follows the trend of crucial information for the currency this week as we will learn how the members of the Monetary Policy Committee voted on the asset purchasing and interest rate decisions. Anything less than last month’s unanimous decision to maintain current levels could weaken sterling. Moreover, we have the key unemployment data detailing the current rate of unemployment in the UK alongside the change in the number of people claiming unemployment related benefits. The new Governor the Bank of England made it clear last week that he sees an improving labour market as key sign of economic growth; furthermore, that interest rates would not be raised until unemployment falls back beneath 7% (with a few caveats) and as a result the labour data could well cause a great deal of volatility in the market. Call your trader now to get the latest price as sterling reacts to these important results.