Sterling edges up after unemployment benefit claims fall

Published: 18 November, 2010

Sterling edged up yesterday after an unexpected drop in the number of people claiming unemployment benefits.

Currency Rates

EURO/GBP - 1.172
US$/GBP - 1.593
CHF/GBP - 1.574
CAN$/GBP - 1.623
AUS$/GBP - 1.615
ZAR/GBP - 11.153
JPY/GBP - 132.65
HKD/GBP - 12.353
NZD/GBP - 2.057
SEK/GBP - 10.986
US$/EURO - 1.358
HUF/GBP - 323.40

Minutes from the Bank of England's Monetary Policy Committee November meeting showed that the bank is still some way off implementing further Quantitative Easing. The figures showed that the number of people claiming unemployment benefit fell by 3,700 in October against an expectation of an increase of 5,000. The Bank of England minutes showed that the vote remained the same as last month with a 3 way split between those keen to keep policy on hold and then Andrew Sentance voting for a 0.25% increase in the interest rate and Adam Posen voting for further Quantitative Easing. Out today there is retail sales data so call in now for a live exchange rate.

In the Euro zone, Ireland came under further pressure yesterday with the premium that the Irish government has to pay on bonds getting higher and higher due to the risk of default. With EU ministers scrambling to work out a rescue plan for Ireland, the euro continued to suffer. Whilst Ireland is a relatively small fish in the economic pond, the prospect of a bailout is likely to keep the euro on the back foot in the short to medium term. It is a relatively quiet day on the data front so call in now for a live price.

In the USA, the US dollar fell against the euro and Japanese yen as stock markets fell with the lack of resolution to the Irish debt situation. Demand for US government bonds rose as data showed the lowest annual inflation level on record and housing figures disappointed. In addition, US stock markets fell due to concerns over China, as Chinese Premier Wen Jiabao said his government were taking steps to tame price rises, suggesting that this might apply to inflows of currency into the country also. Speak to one of the team to avoid missing out.

Elsewhere, the Canadian dollar continued to stay under pressure following falling commodity prices in relation to Chinese moves to stem demand in the economy. With no real data out, the 'Loonie' - as it is known - will track general risk sentiment, so speak to one of the team now about protecting yourself from adverse market movements.

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