Pound Extends Gains against the Euro for Sixth Day on Jobs Data

0
130

Pound Extends Gains against the Euro for Sixth Day on Jobs DataThe pound continued with its winning streak versus the euro for the sixth day after the U.K. statistics office reported that the country’s unemployment rate declined faster than economists had estimated.

The pound rose 0.1 percent to trade at 80.76 pence per euro in midday trading in London after earlier touching 80.54 pence, the highest level since December 2012. The pound also gained 0.1 percent to $1.6780.

Britain’s unemployment rate, as calculated using International Labour Organization approach, fell to 6.6 percent in the quarter through April, down from 6.8 percent in the January-March quarter, reported the Office for National Statistics. Economists surveyed by Bloomberg had expected a jobless rate of 6.7 percent.

**relatedarticle**

The pound has gained against the 18-nation currency after the yields of the U.K. 10-year gilts rose compared to the German bunds amid bets that the European Central Bank will boost stimulus, while the Bank of England will hike interest rates soon.

“The underlying message from U.K. Plc, aside from a few caveats, is that data remains robust across the board,” Jeremy Stretch, a London-based head of currency strategy at Canadian Imperial Bank of Commerce told Bloomberg. “It remains a pretty positive environment for sterling. Euro-sterling has been biased towards the 80 pence threshold for some time and the data continues to point us in that direction.”

The sterling has also benefited from the strengthening economy, which has seen it surge 7.7 percent over the past one year to make it the second-best performing currency after the New Zealand Dollar as tracked by the Bloomberg Correlation-Weighted Indexes. The dollar fell 0.4 percent while the euro advanced 1.6 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com