News overnight from the International Labour Organisation (ILO) stated that the outlook for the global labour market had worsened compared to last year. The ILO called the situation an “urgent challenge stating that governments across the globe need to create at least 600 million jobs over the next decade and stated the outlook had worsened due to the weak global economy. Employment figures can play a big part in the economy, should the number of people in employment fall it shows a weakening economy while the opposite is also true, so these figures from the ILO show that the global economy is under severe pressure at present. In times of global uncertainty and high unemployment investors tend to place funds in the safe haven US Dollar which can often result in USD strength which we have seen. Should unemployment figures continue to rise we could see Sterling Dollar exchange rates fall even further.
In Japan this morning we heard that interest rate decisions were kept on hold at 0.1% as expected while in Germany the purchasing managers index came out at higher than expected levels which has resulted in some Euro strength against the Pound this morning. Currently the Sterling Euro exchange rates are just over the 1.19 level on the mid-market. If you are looking for exceptional exchange rates make sure you contact one of our experienced currency brokers today on 0800 328 5884 or email email@example.com so we can explain all the options available to you.
All eyes in the market will continue to remain on the UK GDP (Gross Domestic Product) figures and Bank of England minutes released tomorrow morning, this could be a big market mover and give some insight into the short-term future of Sterling exchange rates. If you need to transfer money overseas make sure you contact us today so we can keep you informed of any spikes in the market.