Figures yesterday showed that UK unemployment has fallen by 82,000 bringing the total unemployment in the UK to 2.51 million which was the biggest fall in unemployment since 2001. This is clearly good news for the UK economy which has been plauged by high unemployment for some time. While this improvement in figures was positive we will need to see unemployment fall much further in order to see it have a big impact on Sterling exchange rates, however this positive news is likley to take a little pressure of David Cameron and the rest of the coalition and may provide a short term confidence boost for Sterling.
Last night in America we heard from the Federal Reserve Bank of America that they are keeping interest rates on hold at close to zero while re-introducing Quantitative Easing to the tune of $45 billion per month for the forseable future. During the Fed’s announcement it was confirmed that they expect interest rates in The States to remain low well in to 2015 which makes the outlook quite bleak not just for America and the USD but also for the global economy. With America such an important part of the global economy when we see them struggle it can have a very negative knock on effect for the rest of the world and therefore going on the predictions from the FED the currency markets could remain subdued for some time to come.
To me this goes to highlight just how important it is to ensure that if you need to make a currency transfer that you stay in close contact with your currency broker here at Foreign Currency Direct plc in order to stay informed of the latest developments. You can call straight through to our trading floor for free on 0800 328 5884 or alternatively email me directly on email@example.com