Job Losses Hit U.K. Pound in FX Trading

Sterling in currency trading

Economic fundamentals in Britain are showing deterioration at an increased rate right now, bringing the sterling lower in currency trading. One of the biggest hits to the U.K. pound in FX trading, though, has been the job loss data just released. Indeed, the unemployment number was much higher than expected, and that is causing the bottom to pretty much drop out from under the sterling in currency trading.

This comes as optimism had begun to return to the markets. The U.K. pound has been supported recently in FX trading by higher equities — especially in the U.S. Unfortunately, for the sterling, the reprieve is over and economic realities are ready to re-assert themselves.

Unemployment is an important part of the economy. As an indicator, it offers clues as to future consumer spending and other economic factors.

See Also

• Learn More About Unemployment and the Economy
  Economic indicators can point to directions in FX trading
• Sterling in Currency Trading
  FX trading with world currencies

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