The number of unemployed people fell again in Britain, quite impressively. This doesn’t seem enough for the Pound. The key is in the hands of Mervyn King, which sees the dark side of the economy. Claimant Count Change, the earliest and most important indicator for British employment, fell by 15,200 jobs in December. This is the second month in a row that the number of unemployed people drop in Britain. Also the Unemployment Rate, a figure that relates to November, dropped back to 7.8%. The big turnaround was last month when it was reported that 6,300 were relived of unemployment. This number was revised to 10,800 this time – even better. And now, a drop of 3,300 people was predicted, and the number was almost 5 times more. This looks like a positive trend in British employment. But the Pound didn’t budge. It initially rose from 1.63 to 1.6325, no big excitement, and afterwards fell back to 1.6295, at the time of writing. Also against the Euro, the Sterling didn’t move after yesterday’s sharp EUR/GBP move. Yesterday we saw rising inflation in Britain, and today another strong improvement in employment. Both key figures mean stronger economic activity. This should eventually trigger a rate hike. A rate hike will push the Pound higher. Despite these numbers, no rate hike is in the horizon. Mervyn King made a public appearance yesterday and cooled down such expectations. He said there’s no danger of inflation and focused on the problems of the economy, especially on the big government deficit: King also suggested that the bank’s task is complicated by doubt on how fast the next government will cut the budget shortfall. Chancellor of the Exchequer Alistair Darling told lawmakers last month Britain’s budget deficit will be 611 billion pounds ($994 billion) in the four years through March 2013, 5 billion pounds more than previously forecast. His speech hurt the Pound immediately, and has an impact today, as strong employment numbers can’t support a rise of the currency. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading NewsOpinions share Read Next USDJPY Technical Long Term Outlook Yohay Elam 13 years The number of unemployed people fell again in Britain, quite impressively. This doesn't seem enough for the Pound. The key is in the hands of Mervyn King, which sees the dark side of the economy. Claimant Count Change, the earliest and most important indicator for British employment, fell by 15,200 jobs in December. This is the second month in a row that the number of unemployed people drop in Britain. Also the Unemployment Rate, a figure that relates to November, dropped back to 7.8%. The big turnaround was last month when it was reported that 6,300 were relived of unemployment.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.