Pound rises on unemployment data, commodity currencies suffer

Currencies Direct January 23rd 2014 - < 1 minute read

The pound rose to its highest against the dollar in three years
and its strongest against the euro in a year after unemployment
data was better than expected.

Sterling climbed after official figures showed the UK jobless
rate dropped to 7.1 per cent for its fastest decline since 1997,
raising the prospect the Bank of England will hike interest rates
sooner rather than later.


EUR/GBP
slumped to 0.8173, its lowest since December 2012,
before the single currency pared losses in Thursday’s early
European session to reach 0.8196.

Sterling was also at a three-year high against the dollar early
on Thursday, with GBP/USD trading at 1.6607, its strongest since
April 2011.

Meanwhile the Canadian dollar slipped to a four-year low against
its US counterpart, after the Bank of Canada left interest
rates on hold and warned inflation would remain low for some
time.

USD/CAD rose almost 0.5 per cent on Thursday, extending a one
per cent gain the previous day, to reach 1.1134, its highest since
September 2009.

The Australian dollar slipped to a three-year low against the
greenback, after a report showed manufacturing unexpectedly
contracted in China in January.

AUD/USD fell 0.7 per cent on Thursday to hit 0.8785, the lowest
for Aussie since June 2010.

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Written by
Currencies Direct

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