The pound posted losses versus the main currencies after a bearish day in the stock market followed by a rise in the United Kingdom unemployment figures, damping demand for the British currency.
Multiple factors brought the pound sterling down this Wednesday after Bank of England policy makers voted for the continuation of a asset-purchasing program, affirming that it must last until its efficiency is determined. The number of unemployed people in Great Britain rose, as claims for benefits hit 39,300 during the past month, making the total number to reach 1.53 million. The FTSE 100 Index of equities slid to the lowest level since the beginning of May, pushing the pound down against currencies like the U.S. dollar and the euro. The pound has been hit severely during the past weeks, after a political crisis which deepened the already risky outlook for the British currency.
Economists affirm that currently the pound is moving considerably with equity markets, and being this week a corrective one after several weeks of a rally fueled by signs of a global economic recovery, the British currency is following the markets trend, having a weak performance. Other factors are negative for the pound, the rising number of unemployed people suggest that the U.K. economic situation remains rather grim.
GBP/USD traded at 1.6255 as of 12:16 GMT, falling from a previous rate of 1.6422. EUR/GBP rose to 0.8532 from 0.8444.
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