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The pound rose sharply against the dollar, helped by optimistic data on unemployment in Britain, and subsequent statements from the Committee on the monetary policy of the Bank of England. The Office for National Statistics reported that the unemployment rate by the standards of the International Labor Organization fell in July -September to 7.6 percent, compared with 7.7 percent in the three months to August. We also add that the number of unemployed in this period amounted to 2470000 people, which has a minimum value for more than two years. Economists had expected the unemployment rate to remain unchanged.
Today's data also showed that the number of applications for benefits fell by 41,700 in October compared with the previous month , reaching 1.31 million ( the lowest since January 2009 ) . Economists had forecast a decline of 30.2 thousand Given this change in the level of applications for employment of unemployed fell to 3.9 percent from 4 percent in September.
In view of the change in the unemployment rate , the Bank of England may consider raising key interest rates as early as the 3rd quarter of 2015 , an increase of nine months earlier than previously expected. Better prospects for domestic demand in the UK, because the recovery is gaining momentum , means that unemployment will decline faster than the management of the Bank of England considered three months ago. Unemployment is likely to reach a decisive threshold 7% for the 3rd quarter of 2015 .
Also the management of the Bank of England stated that the economic recovery will accelerate in the 4th quarter of the current year and GDP growth will reach 0.9 % from 0.8 % in the 3rd quarter. These forecasts are based on market expectations as to what interest rates will rise in mid-2015 . This increase will slow growth in 2014 and 2015 , said the Bank of England.
The euro fell against the U.S. dollar earlier after the ECB Governing Council member Peter Pret said the central bank may apply a negative interest rate or start buying the assets of banks in an attempt to stimulate the economy of the region, which shows the dynamics of the non-shiny .
Pret said in an interview with Wall Street Journal, that the central bank will do whatever is necessary to fulfill its mission to promote economic growth, including lower interest rates below zero and buying assets from banks to lower the cost of borrowing in the private sector.
Comments Preta were a sign that the central bank may take further action , despite the fact that the U.S. Federal Reserve is likely to curtail incentives in the coming months , which provided support for the dollar.
Also, the pressure on the euro was due to the release of a weak report on the euro area. Data from the Statistical Office Eurostat showed that the September industrial production in the euro zone fell more than expected, after recording moderate growth in the previous month. According to the report , the seasonally adjusted industrial production fell in September by 0.5 per cent ( on a monthly basis ), which followed a 1 percent increase in the previous month . Economists had forecast a decline in September at 0.2 percent.
Later, the euro lost ground played against a broad dollar weakness , coupled with a reduction in yield of U.S. Treasury bonds .
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