THE pound was down against the US dollar this morning (November 16) after new UK job figures showed employment "declined slightly" in the past three months.
Sterling dropped by 0.21 per cent to 1.3144 after the data revealed the employment rate remained at 4.3 per cent but but the economy lost 14k positions when it was expected to gain 50k.
BRC Chief Executive Helen Dickinson recently called on Philip Hammond to deliver a budget for shoppers later this month in order to keep spending strong and shore up the UK economy.
She said: “Considering the intrinsic link between consumer spending and economic growth, the chancellor should reflect on this disappointing state of play and deliver a budget that allays the risks of a further slowdown in consumer spending, by keeping down the cost of living. In other words, a shoppers’ budget."
The Bank of England last week raised interest rates by 0.25 per cent to 0.50 per cent for the first time in ten years after the economy grew more quickly than expected in the third quarter of this year.
Sterling did fall sharply on the day as markets appeared to have fully priced the interest rate rise in a reaction to the announcement.
More fluctuations in the pound to dollar exchange rate are expected as US investors speculate on who will become the next head of the Federal Reserve – the American version of the Bank of England.
The pound is also affected by domestic affairs, with Brexit a source of worry for some investors.
Recent news has increased economic uncertainty, which can give the market jitters.
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