Currency Note Sterling

Sterling benefits from positive employment data

By Ricky Bean September 12th, 2013

Yesterday was a strong day for sterling, making gains versus the majority of its most traded counterparts. Notably, sterling reached the highest levels since January and February against the euro and the US dollar respectively. These shifts came on the back of a crucial unemployment data coming in better than expected. The release showed that the overall levels of unemployment had fallen to 7.7% when they had been widely expected to remain at their previous level of 7.8%. The overall rate of unemployment is closely linked to the timeline for a hike in interest rates as laid out by the Governor of the Bank of England’s (BoE) forward guidance policy, where it was stated that interest rates would not be hiked until unemployment fell below 7% – which the BoE had suggested would not happen until the 4th quarter of 2016. This, coupled with strong economic data from the country as a whole, has led investors to question whether interest rates will in fact be raised sooner than first prescribed. Today, the inflation report hearings are the only major release from the UK, and as such further volatility is possible during this process. Call your trader now for the latest sterling price, as it continues to react from important revelations.