Pound rises as unemployment figures decline
The Pound strengthened against the Euro after official data showed UK unemployment claims fell in April by 4.5 percent, the highest fall since April 2011, indicating that Britain’s economy is on the road to recovery. In other news, economists expect the Bank of England to predict that inflation will rise to its highest at 3.0 percent later this year and the BoE to accelerate the date of expectation of inflation to return to the 2 percent target.
Whereas, Germany’s economy increased weaker than expected, after a steep decline in the last quarter of 2012, while France fell into recession. Germany increased by only 0.1 percent. France has entered its second recession in four years after the economy shrank by 0.2% in the first three months of the year. Revised figures in the last quarter of 2012 showed a decline of 0.7 percent from 0.6 percent, according to the German statistic office.