Figures released yesterday showed that unemployment in the UK had increased by 118,000 to 2.69 million while the number of young people looking for work hit a record high of over 1 million. This data came on the same day the Nationwide announced that the UK’s consumer confidence was at “a low ebb” in December Nationwide blamed this fall in confidence on a rising cost of living as well as the continuing sovereign debt crisis in the Eurozone. Nationwide also warned that the economic recovery is unlikely to gain much momentum in 2012 while they stated that there was a 24% increase in companies experiencing critical levels of financial distress. All rather gloomy news! However, as mentioned yesterday should inflation begin to slow down this could actually provide a boost to the UK economy and therefore Pound exchange rates. Should inflation slow it means the price of goods and services are not increasing as fast and therefore they should stay closer in line with people’s earnings which could help encourage people to spend more and businesses sales figures improve.
Data releases such as unemployment and consumer confidence can have a big impact on foreign exchange rates and if you are looking to achieve the best exchange rates it is important to stay in close contact with your currency broker who can keep you informed of all the economic data releases which could effect your currency purchase. To speak to one of our experienced currency brokers call us today on 0800 328 5884 or email firstname.lastname@example.org.