UK unemployment falls as mortgage lending increases

UK unemployment falls to 2.46 million. Figures show that the number of people unemployed in the UK fell by 49,000 in the three months leading into June. This decline in the total number of out of work individuals was the biggest drop in three years according to the Office of National Statistics. In the housing market, mortgage lending is said to have ‘picked up again,’ according to the Council of Mortgage Lenders. June figures showed a 19% rise from May and a 14% rise on the same month a year ago as 52,000 loans were granted to home buyers.

Pound Sterling – UK Markets

The Euro fell 1% against Sterling yesterday as the pairing dropped to a new one month low. As of 9:46AM the GBP-EUR Interbank was trading at 1.2146. The Pound plunged yesterday against the US Dollar, extending its retreat from a 1.60 high on Monday to a two-week low of 1.5615. The Pound also slipped to a three-week low against the Japanese Yen. This low was 400 pips lower that the previous bottom, levelling out at 132.80.

US Dollar – US Markets

Mizuho Trust & Banking Co. have suggested that the Dollar will rise above 90 yen by the year-close as its 8.5% drop this year has boosted US exports and eased concerns of economic growth. The Dollar rose to a fresh week high of 1.0625 against the Swiss Franc. Markets await results of US Import Price Index and Initial Jobless Claims that are due out later today.

Euro – European Markets

The Euro retreated to its lowest level against the Dollar for more than two weeks as growing concerns over the state of the global recovery triggered strong USD gains.

Other Currencies – Highlights

Foreign investors are cooling off on the appeal of Brazil as an emerging market. Data from EPFR suggests inflows into Russia, India, China, Taiwan and South Korea now eclipse the level of fresh investment into the South American country. The Yen fell from a five-week high against the Euro, as speculation grew that Japanese officials will act to halt an advance in the currency that is endangering the country’s export driven recovery. This also led to a rise in the Australian Dollar, reversing earlier declines. For a live quote or to tell us about your foreign exchange requirements, please call us on +44 (0)20 7740 0000.