GBP USD & GBP EUR Exchange Rates Forecast To Climb If UK Employment Figures Shine

Modified: Wednesday, 11 September 2013 09:26 BST - Written by John Cameron

STORY LINK GBP USD & GBP EUR Exchange Rates Forecast To Climb If UK Employment Figures Shine

Sterling registered small gains against the US Dollar and euro on the day yesterday, sending GBP USD and GBP EUR marginally higher. Weak Italian GDP data ensured that the single currency struggled to assert itself on the session.

The Pound US Dollar exchange rate (GBP/USD) is currently trading up by 0.24% at 1.5733 GBP/USD. The US Dollar Pound exchange rate is currently trading at 0.6356 USD/GBP.

Investors holding Sterling-denominated assets will be looking to this morning’s UK employment data to provide confirmation that the British economy is continuing to heal after the shock of the 2007/08 global credit crisis. Analysts are anticipating that the figures will point to a decrease in the level of jobless claims of 21,000 last month as the nation’s workforce continues to return to gainful employment. The expected drop off in claimants is slightly lower than July’s counterpart number. However, the key ILO Unemployment Rate for the three months to the end of July is expected to remain static at 7.8%, well above the Governor of the Bank of England’s self-imposed upper threshold of 7.0% at which he would consider raising domestic interest rates back up towards their usual levels.

Sterling enjoyed a moderately positive day against the US Dollar and the euro during yesterday’s trading session, sending the Pound US Dollar exchange rate (GBP/USD) back up towards its three month high in the mid-1.5700s once again. Meanwhile the Pound euro exchange rate (GBP/EUR) recorded a very slight upward move on the day, climbing to an intraday high at 1.1869 during late trading. The positive movement for GBP EUR was largely driven by a weakening of the single currency thanks to tamer than anticipated Italian GDP data, out yesterday morning, and the euro-negative effect of the news that eurozone policymakers’ plans for a Tobin Tax to fund future banking crises now appear to be defunct.

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