The UK is facing a significant employment crisis and there are concerns that the jobless figures are not a true reflection of the problem the UK is facing. Therefore, the pound struggled during trading on Thursday as the Foreign Exchange rates saw the currency finish the day at 1.1028 against the Euro and 1.2555 against the US Dollar. Limited wage growth also caused problems for the pound as it contracted for the first time in six years. However, things might not improve for the Pound today as Brexit talks are likely to add further pressure.
It was a fairly steady day for the Euro on Thursday as the single currency reacted to the latest policy decision from the European Central Bank. This saw the ECB make no changes to its monetary policy as it is waiting to see how the current stimulus measures in place are working for the economy.
There were improvements for the US Dollar during trading yesterday as a downbeat mood in markets caused demand for the currency to edge higher. The retail figures from June, as well as the Philadelphia manufacturing index both supported the improved foreign exchange rate. It’s likely that the US Dollar could see further gains if Michigan University’s latest US consumer sentiment increases in line with expectations.