The US economy has announced an extra 163,000 jobs created in July according to official figures released this afternoon. The Federal Reserve claims that 100,000 new jobs need to be created every month even just to stand still so 63,000 jobs to be added is rather impressive. this has seen global stock indices rally this afternoon with most improving by over 2% a good sign for the global economy. However, all is not rosy as the unemployment rate rose from 8.2% to 8.3%.
Sterling has been the benefactor of the good news as typically positive news from the US is followed shortly after by the UK so if we as an economy can start improving ourselves we could see Sterling gain against most major currencies. Indeed, Sterling has hit back against the Australian Dollar from 1.4750 to 1.4850 this afternoon. Also Sterling has gained against the US Dollar by over 1% since the low of the day. However, the news from the US has seen investor confidence return to the Euro zone and funds have been flooding back to the continent.
If you have any questions as to what next week has in store please contact me directly Tom Holian [email protected] Also if you need to make a currency transfer and would rather use an experienced currency broker then also feel free to get in touch. [email protected]
Enjoy your weekend!