Sterling Exchange Rates and UK Unemployment
This morning the latest set of UK unemployment figures have been released and they have shown that the unemployment figures have fallen to 6.5% another drop for the key data set. During the course of the year the number of people out of work in the UK has fallen steadily and is now actually eclipsing a number of other the major economies which has really helped support Sterling exchange rates. Unemployment figures have been seen as hugely important as comments earlier in the year from Governor of the Bank of England (BoE) Mark Carney stated that should unemployment fall below 7% the central bank would look to raise interest rates, it is clear that this has not happened and as a result Mr Carney was compared to an “unreliable boyfriend”! However, it is clear that falling unemployment is a key factor in deciding when to hike interest rates and so this mornings figures coupled with all the other positive data sets we have had recently will only go to heighten the chances of an interest rate increase sooner rather than later with many people predicting it could be as soon as this year. As a result of this mornings announcement we have seen Sterling exchange rates push up even higher against most the major currencies. At the time of writing Sterling Euro exchange rates are at 1.2650 and Sterling Dollar exchange rates are well over 1.71 meaning there are some excellent opportunities to buy currency.
USD Exchange Rates
This afternoon there is a raft of economic data for the US which could lead to a busy period for the Dollar. First up we have the latest set of mortgage application figures which will help paint a good picture of the US housing market which we know is a key component of any economy let alone the world’s largest. Following this we have production figures and a speach from Janet Yellen, the head of the Federal Reserve Bank of America so her comments will be closely watched espcially if there is a surprise announcement with either the production figures or the mortgage numbers. The data is released at 13:30 BST and with Sterling currently close to a 6 year high against the US Dollar there are some excellent opportunities to buy Dollars although following the positive data for the UK this morning and the chance of further movement this afternoon for the USD it will be very important to stay in close contact with one of our senior currency brokers here at Foreign Currency Direct plc.
CAD Exchange Rates
Finally, today we have the latest Canadian interest rate decision and despite interest rates expecting to be kept on hold at 1% the accompanying statement will make for interesting reading and could lead to movement on the Canadian Dollars, another currency against which Sterling is performing very well. The announcement is due at 15:00 BST today so if you would like to discuss the options available to you before the announcement call us today.
So, if you need to transfer funds internationally and would like to discuss the currency market outlook in more detail, your currency requirements and the options available please call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on email@example.com