Employment data took the Sterling Up!!!!!!

Yesterday, the Pound rose to a two-and-a-half year high against the European Euro and enhanced against the U.S dollar and the Japanese Yen in the midst of continued anticipations of further monetary tapering in the United Kingdom. And this happened when the employment data came in very positively.

The unemployment data in November’2006 showed lower than the expected figures being the largest drop in almost 2 years. Yesterday, by mid-afternoon in New York, the pound rose to 0.3% against the Euro, 0.4% against the dollar and 0.2% against the yen respectively. The Japanese yen’s performance is terribly bad and has dropped to a thirteen-month low against the dollar and slipped against the Euro. Investors in Japan think that the BOJ may raise the interest rates, but the BOJ has not yet decided. It is said that this year is going to a year of Surprises in the financial markets and this statement is proved when the sterling was surprised with the raise in the interest rates.

Let’s see how many surprises more we are going to see in the financial markets in future.