Welcome to our account of movements in the foreign exchange rate over the weekend.
Pound to euro: +2.41% on a month ago.
Australian dollar to pound: +1.97% on a month ago.
New Zealand dollar to pound: +3.96% on a month ago.
Look at the pound go! UK sterling has climbed above 1.26 against the euro over the weekend, in addition to taking a cent from the Australian and New Zealand dollars, as the US job market slows down. The US generated just 80 thousand new jobs last month according to the latest NFPs (Non Farm Payrolls.)
This is beneath forecasts for 90 thousand jobs, and suggest the world’s largest economy is not immune to the global slowdown. Speaking about the figures, Federal Reserve member Charles Evans said: “I expect that we will face unemployment well above sustainable levels for some time to come.”
But in spite of this, the news has been a boon to the UK pound, which has climbed as the markets seek stable and secure investments as a respite.
I should note though, that the US dollar has in fact been the biggest benefactor from this data. In spite of the fact that the bad news originated from the US, the markets bought the dollar as the States remains the backbone of the global economy.
Hence, the dollar climbed half a cent against the UK pound over the weekend, as well as the euro.
Going forward, much will depend on whether global confidence picks up in the coming weeks. If the markets remain cautious, the pound could continue to climb as a safe haven in the global uncertainty.
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