UK Pound and Euro Rates Against US Dollar Stabilise

The greenback has strengthened its performance against both the UK pound and the euro, after European currency markets grew bullish following weak housing data released in the United States.

The EUR/USD rate currently leaves the euro buying $1.135, and has roughly remained at that level since the start of today’s trading CET, although this comes after the euro surged against the dollar yesterday, rising from buying $1.132.

So far today GMT, the GBP/USD relationship reached a nadir of the pound purchasing a little over $1.435, but has now crept up slightly to $1.437.

In a similar pattern to the euro, the pound flourished against the US dollar throughout yesterday, climbing rapidly from buying $1.43.

United States housing data released by their commerce department, revealed that the number of new housing construction projects had fallen in March, which many analysts view as a sign of economic weakness.

The pound has also thought to have been boosted by a latest opinion poll conducted by ORB for the Daily Telegraph, which found that 52% want to remain in the European Union (EU), well ahead of the 43% of respondents who wished to leave.

Societe Generale wrote in their daily forex round up, that the softer than expected United States housing starts data did nothing to send their yields upwards, and the housing figures are consistent with steady rather than spectacular GDP growth.

Also, the euro area current and capital account figures show how ECB policies are helping provide EUR 40 billion per month, of buying for foreign bond markets.

The EUR/USD remains in the top end of its range the investment bank said, and its one month volatility level is lower than at any point since 2014.

UK Unemployment Rises

Official figures have disclosed that the levels of unemployment in the UK rose by 21,000, between December last year and February.

This is a reverse of the recent positive employment figures that have been released in the UK, and now there are 1.7 million who are seeking new positions.

Despite the increase in the unemployment figures, year on year this was 142,000 fewer without employment.

The number of people who are out of work, and are not actively looking for work or even available for a new job has also fallen, the data revealed.

The unemployment rate is also still lower than a year ago in percentage terms, currently 5.1% are without employment, compared to 5.6%.

In total, there were 22.98 million people working full-time, 289,000 more than for a year earlier.

There were 71,000 more people working part time, leaving the amount of part time workers at  8.43 million.

German Producer Price Down in March Year on Year

Producer prices for industrial products fell in Germany by 3.1% in March compared to a year ago, according to the German Federal Statistical Office.

The figure was consistent with the producer price data for February, which fell 3% year on year.

Energy prices fell by a substantial 9.2% in March compared to a year ago, that was followed by a drop in intermediate goods by 2.3%, and prices of non-durable goods of 0.3%.

The prices of capital goods rose by 0.6% and of durable consumer goods rose  by 1.4%.