After a report indicating the highest unemployment rate in more than a decade in the United Kingdom, the pound lost versus most of the 16 main traded currencies, as the British economy has been one of the most weakened in the region, shunning investors from assets in Great Britain.
Even if the global economy has been showing sings of improvement in the U.K. and globally, unemployment rates are one of the most affected figures by the new adjustments of the economy, breaking records in European Union, Japan, as well as in the U.K., which posted the highest unemployment rate since 1995 at 7.9 percent of the workforce, raising concerns regarding the socioeconomic future in the United Kingdom. The British pound has been one of the few currencies that did not gained significantly versus the weakened U.S. dollar, which is losing appeal among traders by the day, as investors seek for yield in stock markets and emergent countries.
Yesterday’s Bank of England declarations regarding further measures to adjusts national accounts combined with today’s unemployment figures made the pound’s attractiveness to fall significantly, as several world economic regions like the South Pacific provide a much more confident scenario for traders to inject money, leaving the pound together with the U.S. dollar as the worse bets for this week in foreign-exchange markets.
GBP/USD traded at 1.6519 as of 11:18 GMT from a previous rate of 1.6598 yesterday. EUR/GBP traded at 0.8883 from 0.8820 in the intraday comparison.
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