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UK unemployment influences major currencies

15 Sep 2020

On Tuesday, the Euro-to-USD exchange rate was boosted by September’s economic sentiment results. An ECB member claimed that inflation and growth issues are still in place, despite seeing positive German sentiment. 

Sterling traders are keeping an eye on the ongoing Brexit negotiations, ahead of more days of debate regarding the Internal Market Bill. 

Investors now await Thursday’s Bank of England monetary policy meeting to see whether interest rates will be affected. 

The news allowed the GBP/USD and EUR/GBP to become stabile.

Today UK labour-market figured were published and showed an increase in unemployment, going up to 4.1% in the three months to July. The total jobless number now stands at 62,000, according to the Office for National Statistics (ONS), 

Director of economic statistics at the ONS, Darren Morgan said: "Some effects of the pandemic on the labour market were beginning to unwind in July as parts of the economy reopened."

"Nonetheless, with the number of employees on the payroll down again in August and both unemployment and redundancies sharply up in July, it is clear that coronavirus is still having a big impact on the world of work.”

Chancellor Rishi Sunak addressed the current challenges saying, "This is a difficult time for many as the pandemic continues to have a profound impact on people's jobs and livelihoods. That's why protecting jobs and helping people back into work continues to be my number one priority."