Employment Data Sends UK Pound Lower

A consumer sentiment index measuring how Britons feel about hiring prospects fell to minus 67, a decline of one point. The news that consumers aren’t feeling very confident has the UK pound lower against many of its counterparts on the Forex market.

One of the problems for the UK pound recently has been its lackluster economic data. Soft data coming out of Britain continues to weigh on the pound, and worries that the British economy could slide back into recession are definitely taking their toll.
Last week, the Bank of England announced another round of quantitative easing meant to help stimulate the economy. However, even with that move, it appears that Britons aren’t so easily convinced that things are going to pick up. The latest reading on hiring sentiment brings the third quarter drop to 17 points. With consumer sentiment faltering, it could lead to Britons deciding not to spend more — and that will further hinder economic recovery.
For the most part, UK pound is lower in Forex trading. The euro is higher as traders look toward eurozone bank recapitalization with optimism. Canadian dollar is higher as the pound falls into the category of low yielders that are being sold in favor of high yielding assets. Only the US dollar and Japanese yen are lower against the pound.
At 16:17 GMT, EUR/GBP is higher, at  0.8758, slightly up from the open at 0.8756. GBP/USD is gaining, at 1.5766, up from the open at 1.5577. GBP/CAD is down to 1.6016 from 1.0647, and GBP/JPY is higher, at 122.03 — up significantly from the open at 119.40.

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