7/16, 10:55 AM (Source: TeleTrader)
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Pound falls to six-month low versus euro

The selling pressure affecting the United Kingdom's currency strengthened on Tuesday in spite of a statistical update showing the unemployment rate remained at 3.8% in the quarter through May, its lowest level since 1974, and that the annual rate of growth in average earnings advanced by 0.2 percentage points to 3.6% or 3.4% including bonuses. The so-called claimant count advanced to 38,000 last month from May's upwardly revised 24,500, while the measure of new unemployment benefits climbed to 3.2% from 3.1%. Wages are still lower than before the financial crisis if inflation is factored in but the two benchmark did advance by 0.2 points to 1.7% and by 0.1 to 1.4%, respectively.

Ursula von der Leyen, the candidate for the next European Commission president, formally suggested today to extend the Brexit period, as was expected. However, she failed to give any indication she would be willing to renew negotiations with the government in London.

The euro advanced 0.25% to £0.90177 after hitting £0.90247 for the first time since January 11. The pound declined 0.36% to $1.24702 compared to the session low of $1.24557, last seen six days before. Sterling was off 0.28% at ¥134.6935. Earlier it dipped to ¥134.56, the weakest point since January 3. The exchange rate against the Swiss franc was down 0.42% at 1.2273 following a drop to 1.2262, unseen since July 6, 2017.

Breaking the News / IT