Pound Sterling Gains Against Euro, Australian Dollar & New Zealand Dollar

Modified: Sunday, 17 November 2013 21:23 BST - Written by Frank Davies

STORY LINK Pound Sterling Gains Against Euro, Australian Dollar & New Zealand Dollar

The Pound has climbed against the euro on the day following two positive UK releases. Sterling has also gained against AUD and NZD thanks to a dip in global appetite for risk.

The Pound to Euro exchange rate (GBP/EUR) is currently trading down up 0.68% at 1.1906 GBP/EUR. The Euro to Pound exchange rate is currently trading at 0.8399 EUR/GBP.

Sterling received a double boost this morning in the form of strong UK jobs numbers and a go-ahead assessment of Britain’s economic prospects from the Bank of England. The UK unemployment figures led the way, revealing that the overall level of joblessness sank to 7.6% during the three months to the end of September. The showing was widely expected by analysts, but nevertheless came as a bonus for investors holding the Pound given that the level of British unemployment stood at 7.7% during Q2. The encouraging labour market figures meant that UK unemployment had slumped to its lowest level for three years last quarter, providing further evidence that the British economic recovery is gaining traction. The Pound euro exchange rate (GBP/EUR) climbed into the mid-1.1800s as a result.

Matters improved for Sterling later this morning with the publication of the latest Bank of England quarterly inflation report which contained an upbeat message on the state of the UK economy. Governor Mark Carney used the missive to note that an improvement in the UK economic climate has ‘taken hold’ and that unemployment will fall at a quicker pace than had previously been forecast. The Bank also predicted that UK economic growth will be at an annualised rate of almost 3.0% next year. The euro Pound exchange rate tumbled to as low as 0.8389 as a consequence.

Elsewhere, the Commodity Dollars have given up ground against Sterling so far today thanks to a tame performance from Asian share markets overnight. The predominantly ‘risk off’ trading environment, which was engendered by a fruitless set of Plenum meetings in China, has prevailed into today’s European equities session. The GBP AUD and GBP NZD exchange rates moved Northwards on the day as a result.

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