No change for UK Unemployment

With the Pound coming under plenty of pressure in recent weeks, hopes are now lying on some upside surprises from the remaining data releases for May to prevent exchange rates from falling further and provide some sort of relief for buyers to take advantage of. Yesterday saw the latest unemployment and average earnings figures for the UK, an area that has been slipping in recent months and weighing on the pound. Latest figures actually matched analyst’s expectations exactly with the headline unemployment rate remaining at 4.2%, and average earnings coming in at 2.9%, up slightly from 2.8% in the previous month.

With no surprises, the Pound traded relatively flat yesterday with major pairs being driven by other currencies. EUR/USD dropped over a cent during yesterday’s session, driven by weaker industrial production figures for the Euro-zone and an overall stronger US Dollar. Subsequently, GBP/EUR was able to make small gains off the weaker Euro and GBP/USD suffered for yet another day as the greenback remains in pole position ahead of likely rate hikes in June.

The day ahead sees Euro-zone inflation figures at 10 am with another string of lower impact data from across the pond this afternoon. For Sterling, we now do not have any more releases until the middle of next week when we will see latest Inflation figures and Retail Sales stats to finish off the month. This leaves the pound in a continued vulnerable position with nothing to support it or reverse the current negative trends. With Inflation dropping quicker than first expected, and Retail Sales on a weakening trend, it is difficult to see where any better buying rates will come from in the coming weeks.

If you have a currency transfer to make in the coming months, contact your broker today for guidance on timing this transfer and further information on how a Forward Contract or Limit Order to help you to make the most of this difficult market.