News from the UK has shown that the UK job market could be turning a corner with more people looking to hire staff rather than let people go. The employment market can give a good indication as to the strength of an economy – if employment is up then companies are likely to be performing well and growing while the opposite is true for high levels of unemployment. With more people in work it also means there should be more money coming into the economy as people are earning and then spending which can help the country get out of recession. With the Olympics fast approaching and the Queen’s Diamond Jubilee we could also see a “feel good factor” not only with more jobs being created as a result but this could also lead to increased spending again this could be positive for Sterling exchange rates.
Tonight sees the US Federal Reserve Interest rate decision where the expectation is for interest rates to be kept on hold however any statement from the Central Bank regarding the outlook for the US economy and therefore interest rates could have an impact on Sterling Dollar currency exchange rates. To hear the latest news from America and Dollar exchange rates keep in contact with your currency broker.