Unemployment rate brings stability for sterling

The pound has been given some breathing space due to positive unemployment rate stats released coming in better by 0.1%. This was a welcomed boost for Sterling and the UK’s economy following the abysmal month the pound has had recording lows against its major competitors. The new unemployment figure boasted an 11 year low as the last time the rate was at 4.9% was back in July 2005. The Pound gained a round half a cent on the euro Positive figures seems to have managed to stabilise the Pound for the moment as we have already seen better than expected CPI data on Tuesday supporting Sterling further. However positive this data may be it is only having a minimal effect on the Currency market than it would have done before the EU referendum result, with article 50 to be invoked next year it seems investors of the Pound are acting cautiously at the moment and are not confident in the UK’s current economy despite these positive figures being released, it may be sometime until we some considerable gains for the Pound and in the interim the rate is likely to carry on the downward trend should there be anything negative against Sterling and any Positive data from the Eurozone.

The ECB will also release information on their interest rate decision, it is expected that the ECB will not take any action on their current stance with interest rates although that is not a given, Mario Draghi will address the public about interest rates at 12.45pm. Earlier in the morning at 9.30am the UK will release retails sales figures which is expected to fall, could this be the end of the pounds stability should there be a negative figure? Moving across the pond to the US jobless claims data is to be recorded at 13.30pm. With the markets active 24/7 and rates changing every second reacting to various data releases and political affairs it is important to keep an eye on the rates to make sure you are not caught off guard so keep in contact with your account manager here at Currency Index.