Pound US dollar exchange rate: GBP benefits from unemployment drop

The latest stats showed a downturn in the UK unemployment rate in June, with the figure now sitting square at 4 per cent.

Pound gains have not been as substantial as they could be, however, with consistently lacklustre wage figures diminishing the impact a decline in the unemployment rate should have.

A stall in provocative Brexit headlines has also seen off any sharp downturn in pound value as market focus remains fixed on the unfolding financial crisis in Turkey, which is also contributing to the tapering off of US dollar value due to easing safe-haven demand.

The struggling lira managed to regain some of its losses following news that Turkey’s finance minister Berat Albayrak is due to hold a meeting with foreign investors on Thursday.

The slight stabilisation of the lira may be temporary, however, with market analysts predicting the situation will worsen before it gets better.

The US dollar is likely to continue being driven by safe-haven demand throughout the session, with a lull of noteworthy domestic data today keeping USD investors focused on developments abroad.

As far as the pound is concerned, tomorrow’s U.K. inflation data will be key.

With wage growth slowing, an uptick in inflation could put Sterling under pressure.

Daily Express :: City and Business Feed

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