This morning’s publication of the British Claimant Count Change report further revealed a growing weakness in the British economy. As risk aversion prevails in this week’s trading environment, the GBP finds itself at the mercy of a bearish sentiment.
While it does not appear to be as negatively affected as the euro zone, the UK pound has indeed been wounded by recent reports. Yesterday’s inflationary reports sparked a concern that a sluggish period was impending and many investors had begun to look to today’s employment data to determine if the downturn would be confirmed. With 24,500 British citizens filing for unemployment benefits for the first time in June, a structural deficit appears to be persistently nagging the UK.
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