The US Dollar is trading at a seven-month low against the Pound due to stronger than expected UK jobs data, but is holding steady against the Euro and Japanese Yen as the threat of military action in Syria recedes.
Sterling jumped higher against the ‘Greenback’ after the latest UK unemployment data showed that the unemployment rate in the country fell from 7.8% to 7.7% in the three months to July. The fall took economists by surprise and added to outlook that the UK economy is on track to make a strong recovery.
The data also added fuel to expectations that the Bank of England may raise interest rates sooner than it has indicated. Last month, the BoE pledged to keep interest rates on hold at current record low levels until the unemployment rate falls below 7%, something that the bank does not see happening for another three years.
Against the Euro, the Dollar remains close to a six-week low after investor sentiment was boosted by President Barrack Obama’s decision to postpone a congressional vote over whether the US would take military action against Syria. The Assad regime agreed to hand over its stockpiles of chemical weapons to the international community, a move that if fulfilled would end the prospect of military action in the country.
Demand for safe havens was also knocked as yesterday’s positive Chinese data continued to bolster risk sentiment.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6351
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7535
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0757
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.1822
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0346
(Correct as of 15:10 pm GMT)
Comments are closed.