Figures announced yesterday by the Office for National Statistics (ONS) showed that UK unemployment reached a new 17 year high of 2.64 million people with youth unemployment also at the highest levels since records began. The concerns surrounding the UK economy are growing, the UK are now apparently isolated from Europe following Cameron’s Veto, unemployment is rising, growth is minimal and the debt levels are spiralling while many analysts are suggesting that any further problems in Europe could lead to a UK recession. Despite this Sterling continued to strengthen against the Euro to an 11 month high, a fantastic opportunity for those clients looking to buy Euros. The main concern now is that this spike does not last much longer and these opportunities may not be seen again for another 11 months.

Meanwhile, yesterday President Barack Obama announced an end to the Iraq conflict. The conflict that has lasted nine years and has cost thousands of lives and billions of Dollars will be at an end when the US troops lower their flag in Baghdad. The cost of any conflict can effect economies and therefore currency markets and so an end to the conflict could slowly see the US Dollar strengthen as the expense of the war slows down, however the end of the conflict could also mean investors regain confidence in the global economy and as a result could invest funds in “riskier” economies, only time will tell what the actual result will be.

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