The Great Britain pound strengthened today for the second day after the labor market provided good numbers, suggesting that Britain’s economy may retain its strength despite the spending cuts.
The number of people claiming the jobless benefits fell by 20,800 between May and June, somewhat more than the 20,100 decline analysts predicted. The unemployment rate for the three months to May 2010 was 7.8 percent, compared to expectations of 7.9 percent and down from the previous reading of 8.0 percent. The today’s reports, together with the high inflation, support the pound’s strength.
Previously the sterling was supported by the expectations that the new coalition government would be able to perform the budget cuts without hurting the nation’s economy too much. In the end, such hopes might prove true.
GBP/USD trade at 1.5280 as of 16:18 GMT today after it opened at 1.5175. GBP/JPY climbed to 135.28 from the opening rate of 134.63.
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