After countless months of gloomy economic news, the UK seems to be enjoying a run of more positive data. Last week’s better-than-expected manufacturing, construction and service sector reports were followed by yesterday’s industrial output increase. This brighter outlook has now been supported by some surprisingly good employment figures.
The Pound Sterling Exchange Rate was in the region of 1.1782 against the Euro as of 10:00 GMT
According to the Office for National Statistics the number of UK residents claiming unemployment benefit fell by 8,600 in May.
The Pound was little changed against the US Dollar and Euro
This marks a seventh consecutive monthly decline and the figure was significantly better than the 5,000 slide economists expected.
April’s 7,300 drop in unemployment claims was also revised to a fall of 11,800.
Employment increased by 24,000 rather than declining by 11,000 as forecast.
In the three months through April pay growth also jumped from 0.6 per cent to 1.3 per cent.
The unemployment rate held steady at 7.8 per cent, but youth unemployment declined by 43,000.
Before the employment reports were published the Pound was little changed against the US Dollar and Euro, but the British currency strengthened modestly against its rivals after the figures were released.
As economist Peter Dixon notes: ‘The job market appears to be moderately improving [But] we may see a pickup in output without a further increase in employment. Employment might show a lag to any increase in output.’
An absence of significant UK news may limit Sterling movement in the days ahead, but the British currency could fluctuate in response to global economic developments.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5654 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1782 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6462 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9725 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6387 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8476 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6078 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5075 >
(As of 10:00 GMT)
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