March 16, 2011 - Written by John Cameron
STORY LINK Pound Euro Exchange Rates ? GBP/EUR Recovers Lost Ground While USD and AUD Trade on the Level
The Pound Dollar exchange rate (GBP/USD) is 1.6055. The Pound Euro exchange rate is 1.1533.
The Pound suffered a blow this morning, with the release of employment data for January by the Office of National Statistics. The numbers showed that UK unemployment now stands at 2.53 million, its highest level since 1984. With swingeing cuts to UK public services being rolled out through the remainder of 2011, the outlook does not look rosy for the real economy in the UK. However, the figures did offer one ray of hope as they showed that UK Unemployment Claims unexpectedly fell by over 10,000 in February, against expectations of a slight rise.
On a busy day for data releases, Eurozone inflation figures for February came in as expected, showing an annualised rise in consumer prices of 2.4%. This figure is unlikely to alter analysts’ expectations of an ECB rate hike in April.
Meanwhile, in the States, producer price figures have just been released for last month. They confirm that inflationary pressures are escalating in the US economy, with input prices rising at an annualised rate of 5.6%.
Turning to sovereign debts, leading ratings agency, Moody’s has today downgraded Portugal’s credit rating by two notches, from A1 to A3, stating that they were concerned about the level of Portugal’s deficit and growth levels in the Portuguese economy. Despite Moody’s action, Portugal managed to sell €1bn on the credit markets at a rate almost a third of a percentage point higher than at their last debt auction on 2nd March.
The Euro has lost almost 0.50% during today’s session against both Sterling and the US Dollar and further downside is possible if concerns over sovereign debts persist.
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