Pound Sterling breached 1.23 against Euro as UK unemployment fell again

The Pound Sterling breached the 1.23 level against the Euro before easing as data showed that unemployment in the UK fell to its lowest-level in five-years in the first quarter of the year.

The currency’s gains were short-lived however as a separate report for average earnings disappointed economists.

According to the Office for National Statistics the UK’s unemployment rate fell from 6.9% to 6.8% in the first quarter of 2014.

The data showed that the number of people out of work fell by 133,000 to 2.21 million, the lowest level recorded since 2009.

Youth unemployment also dropped to its lowest levels since 2009.

The number of people in world increased by 283,000 to 30.4 million the biggest increase recorded since records back in the 1970s.

Those declaring themselves self-employed also hit a record high.

The figure matched economist expectations and will intensify the pressure on the Bank of England to make its position clearer on when it will increase interest rates.

“Record low interest rates are increasingly unnecessary. The Bank will today tacitly accept an earlier rate hike than it thought three months ago,” said Rob Wood an economist from Berenberg Bank.

Sterling then softened after a separate report showed that average earnings which excluded bonuses only increased by 1.3% in the first quarter.

The figure was below the inflation rate and below economist expectations for a figure of 1.5%.

Average earnings, including bonuses increased by 1.7% below forecasts for a rise of 2.1%.

Sterling could make further movement as the session progresses as investors will weigh up remarks made by Bank of England Governor Mark Carney for clues about his plans for UK monetary policy.

Carney will present the Banks forecasts at a press conference at 10:30 a.m.

Pound (GBP) Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,,US Dollar,1.6862 ,
Pound Sterling,,Euro,1.2300 ,
Pound Sterling,,Australian Dollar,1.7903 ,
Pound Sterling,,New Zealand Dollar,1.9498,
US Dollar,,Pound Sterling,0.5928 ,
Euro,, Pound Sterling ,0.8147 ,
Australian Dollar,, Pound Sterling ,0.5572 ,
New Zealand Dollar,,Pound Sterling,0.5131 ,

[/table]