The pound is broadly strong against the euro and the dollar this morning, after the UK’s unemployment figure for June was released. The country’s unemployment rate reached 3.9%, lower than the expected 4.2%.
Despite this, average earnings figures weren’t as promising. Average earnings, with a bonus included, fell 1.2% in June which is sharper than the 1.1% fall predicted, while average earnings fell 0.2% which is worse than the 0.1% fall that was forecasted.
Although the unemployment rate is less that expected at the moment, we could see a far bigger number when the furlough scheme ends in October.
The UK and Japan are reportedly making progress on agreeing a trade deal, after two days of negotiations last week. Japanese Foreign Minister, Toshimitsu Motegi, said there was “substantial” agreement in most areas. The UK’s Secretary of State for International Trade, Liz Truss, said there was a “consensus” on extending Japan’s current trade standards with the EU in financial and digital services. The two sides hope to reach a deal within a month.
