UK Unemployment Plunges

UK jobless figures has fallen more than expected by 30,900 in May figures released at 8.30am this morning have revealed.

Pound Sterling – UK Markets

The Pound has shown some rally up against the Dollar and the Euro since 8.30am this morning when optimistic data was released about UK employment levels. UK joblessness was expected by economists to fall by 20,000 in May but figures released this morning have actually revealed a drop of 30, 900. There has been a drop in unemployment of 7.9 percent in the three months to April. Average earning figures which reveal how short-term pay levels are changing are also up by 4.2 percent. Cuts are still the focus of media news as private equity executives are lobbying against government Capital Gains Tax plans which may more than double tax on profit from investments.

US Dollar – US Markets

The Dollar has gained ground against the Euro and also gained on Sterling early this morning until the Pound rallied following the UK data release at 8.30am. The US is also expected to experience some positive data today as US manufacturing figures are released. Economists are expecting new figures will reveal that manufacturing is leading the US out of recession with output by factories, mines and utilities increasing by 0.9 percent in May. Growing exports and business investment in new equipment are helping the US recovery, alongside the continuing minimal interest rates to help broaden the recovery.

Euro – European Markets

A Spanish newspaper has reported that Spain may receive an emergency credit line causing the Euro to fall the most in more than a week against the Dollar on renewed concern that the crisis in Greece is spreading to other nations. EU Consumer Price Index figures have been released this morning which are 0.1 percent up in May as expected.

Other Currencies – Highlights

The Yen has traded at a four-week low against the Australian Dollar and one week low against the Euro as demand is waning for the Japanese currency as a safe refuge in light of greater global recovery. This appetite for riskier investments also boosted the Australian and New Zealand Dollars. For a live quote or to tell us about your foreign exchange requirements, please call us on +44 (0)20 7740 0000.