Brexit Fears Damage UK Pound

The UK pound has suffered, as concerns over the possibility of the UK leaving the European Union (EU), raised selling pressures for investors.

Against the US dollar, the pound has fallen to buying £1.41 this morning GMT, from purchasing just under $1.43 at the beginning of yesterday.

The encroaching fears about a ‘Brexit’, also resulted in GBP/EUR trading at its lowest point for over two weeks, with the pound depreciating to buying EUR1.27 today GMT, reduced from just over EUR 1.285 yesterday.

A poll conducted by the Daily Telegraph newspaper concluded that those who are in favour of leaving the EU, are more likely to get out and vote on the June 23 referendum day.

Political strategist Sir Lynton Crosby, who masterminded the surprise victory for David Cameron’s Conservative Party at the general election a year ago, concluded that the final outcome is in the balance, and believes that the most inspiring campaign will lead to victory.

FC Exchange analyst Daniel Wray, opined in his daily brief, that increasingly questions are being asked over the conditions that the UK economy will have to deal with, in the event of a ‘Brexit’.

He wrote: “The issue is that there is no precedent for an economy the size of Britain leaving the EU.”

“Government figures show 12.6 percent of Britain’s economic output is linked to exports to the EU’s 27 other members, for whom only 3.1 percent is linked to exports to Britain.”

UK Employment Figures Reveal Positive News 

Figures from the UK’s Office of National Statistics have shown that in three months leading up to January this year, there have been 116,000 more jobs created in the economy.

Compared to a year ago, 478,000 new positions have been established, and the levels of employment are now at a joint highest level since comparable records began in 1971.

A breakdown of the data for those in employment revealed that there were 22.94 million people working full-time, 302,000 more than for a year earlier.

Additionally, there were 8.48 million people working part-time, 177,000 more than a year ago.

The unemployment rate now stands at 5.1%, a reduction of 0.6% from a year ago, leaving 1.68 million people unemployed. There are 28,000 fewer who are seeking work in January, compared to August to October last year.

Production in Construction up by 3.6% in Euro Area, and Up by 1.6% in EU28 

The construction sector has increased its productively levels by 3.6% in the euro area in  January this year, in comparison to December last year, according to Eurostat.

In the EU, activity in construction escalated at the slower pace of 1.6% for the same period.

The data highlighted that progress in the sector has been made, as the figures for December showed that construction had fallen by 0.7% in the euro area, and by 0.1% in the EU.

Year on year, in January 2016 compared with January 2015, production in construction grew by 6 % in the euro area, and by 4.4% in the EU.

The rise in building construction and civil engineering, were the main influences behind the sector rising in output.

In a monthly comparison, the highest increases amongst the member states were

recorded in France by 7.3%, Germany 7 %, and Spain 2.6%.

And the largest decreases were found in Hungary with a minus 13%, Romania minus 6.4%, and Slovakia with a negative score of  6.2%.