Exchange Rates - Pound Euro GBP EUR and Dollar USD movement on UK ILO unemployment figures

13 Apr 2011 at 8 AM - Written by John Cameron

STORY LINK Exchange Rates - Pound Euro GBP EUR and Dollar USD movement on UK ILO unemployment figures

The Pound Dollar exchange rate (GBP USD) currently trades at 1.6269. The Pound Euro exchange rate (GBP EUR) currently trades at 1.1209. See the currency converter for other live currency exchange rates.

Today is a busy day for key economic releases, after yesterdays surprising UK CPI figures, markets will now be paying close attention to the UK ILO unemployment figures due at 0930 this morning. Unemployment remains stubbornly high at 8% and analysts expect no change in todays figures. Perhaps more importantly traders will look at average earnings figures for a greater indication on the impact on recent inflationary pressures. The cost of living has soared with recent increases in oil and food prices, the situation has not been helped by severe austerity measures set in place by George Osbourne. The full effects of the VAT increase earlier in the year have arguably yet to be seen and it it will be interesting to see whether companies in the UK have been forced to raise wages to keep their staff happy in the current economic environment.

From the Eurozone we have industrial production figures at 1000, the figure is expected to show expansion in line with their ongoing economic recovery. It would be a surprise if this release triggers any substantial price action considering the lack of response to yesterdays ZEW index figures. The Euro seems to be one way traffic at the moment gaining in strength on a daily basis with traders buying into the single currency in favour of its slightly higher yield status. It is likely that we will see a move towards support at Sterling Euro rate of 1.1180 by the end of the week with a possibility of a move below 1.10 GBP/EUR if the current trend continues.

The US open sees the release of US retail sales, the expectation is that the figures will represent a decrease in retail spending from 1% to 0.5%, the decline is expected due to an expected decrease in auto sales following a strong month in February. Retail Sales figures are often market moving and with the release coming at the start of the US trading session we will undoubtedly see volatility. A host of Fed speakers will also be commenting on the US economic situation throughout the afternoon trading session with the beige book due for release at 1900.

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