020 7898 0500Sterling stabilised somewhat on Wednesday, resisting further moves to the downside as a better-than-expected UK jobs report boosted the currency. Average wage growth throughout the previous quarter met expectations to record 1.9% growth. However, it was the change in the number of people claiming unemployment benefits that really boosted sterling, with a decrease of 14,800 outstripping the expected fall of 2,900. Although overall unemployment remained steady, the figures suggest that the number of people able to work but receiving benefits has fallen, which can be seen as a boost to the UK economy. This news saw sterling make marginal gains across the board, although these were largely muted by the lingering fears that surround a UK exit from the Eurozone.
On the data front It’s a quiet day from the UK today, with investor attention focused on the US for the release of unemployment claims and the Philadelphia Federal Reserve manufacturing index. But in all likelihood the influence of these releases will be overshadowed by the outcome of discussions by David Cameron with other European Union heads at their two day meeting starting today on the revised terms of the UK’s membership.
