Unemployment figures hurt sterling

This morning’s figures showed UK unemployment has risen to 2.5m – the first monthly rise for 6 months. The new number equates to an unemployment rate of 7.9%.

As the Pound is so sensitive to any news around economic recovery, sterling has predictably been falling. We have lost nearly a cent against both the Euro and US Dollar.

Tomorrow morning’s retail sales data have the potential to bring exchange rates back up a little, but any more bad news for the UK is likely to weigh heavy on the Pound through the Christmas period.