Roller Coaster Sterling

November 11, 2009 12:25 GMT

The Sterling rose against the Greenback after news that Britain’s unemployment rate had decreased. UK Jobless Claims Change results indicated that the unemployment rate in Great Britain has decreased () despite expectations of an increase. For the last three months, the unemployment rate recorded showed a fall from 7.9% to 7.8%.

The Cable was trading around 1.6770/80 at 09:52 GMT, compared with yesterday’s closing price of 1.6602. However, after the BoE release suggesting slower economic recovery in the UK region, the Cable took a massive dive to 1.6650 at 12:24 GMT from the day’s high of 1.6798.

After taking a lead in major currencies today, following a negative sentiment reacting against the negative credit ratings by Fitch, accompanied by S&P’s negative comments about the UK’s monetary system. It has been suggested that the credit situation in the UK was one of the “most delicate” amongst wealthy nations.