Currency Note Sterling

Stronger data from the UK helps sterling to stabilise

By Ricky Bean January 21st, 2016

After falling further against both the euro and US dollar overnight, sterling stabilised somewhat on Wednesday following a better-than-expected labour report released from the UK.

The British currency had fallen to a fresh six-year low against the US dollar during the early hours of Wednesday morning, and also slipped to the lowest rate in 12-months against the euro – thanks to the comments made by Bank of England (BoE) Governor Mark Carney’s on Tuesday. Any further poor data from the UK yesterday could have seen sterling fall significantly; thankfully sterling found support following the release of the data that showed unemployment rates had fallen to a six-year low of 5.1% in December. This compensated for a lower than expected increase in average earnings of 2% over the previous quarter.

UK data takes a back seat today, with interest turning to the Eurozone and the latest interest rate decision from the European Central Bank (ECB).