As risk avoidance sweeps through markets, pound drops below $1.26
LONDON (UK) – With risk avoidance sweeping across markets, the pound slipped on Thursday. This enhanced the US dollar’s safe haven appeal.
The pound slipped a quarter of a percent against the dollar to touch $1.2556 despite the ease in the slide of job markets in the UK last month.
Rony Nehme of monetary research company Squared Financial said: “We still believe going forward the UK faces issues and think the economy will fare worse than others in Europe.”
From March to June, the number of employees in firms across the nation dropped by 649,000. However, the sharpest fall came at the beginning of hte lockdown, said the Office for National Statistics on Thursday. In June the number of employees dropped by more than 74,400. In April it was 450,000 and 124,000 in May.
Investor are sceptical whether the financial stimulus packages announced by the government will be enough to boost the economy with UK gross domestic product data for May rising less than expected.
The pound fell 0.2% to 90.84 pence against the euro ahead of a European Central Bank meeting on Thursday.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field