Sterling rises against major currencies

Sterling rose against major currencies in trade in reaction to a resilient British labour market report and ahead of the US retail sales figures for July, dealers said.

Sterling was the best performer on the day as the British labour market figures indicating the number of unemployed down 8,800 in July.

Data showed that the number of people claiming jobseekers' allowance in Britain fell for the second month in a row, but economists had forecast a 3,000 increase.

Claimant jobseeker's allowance unexpectedly fell by 2,300 in June, according to revised figures published today.

The Bank of England highlighted downside risks to economic growth as well as inflation, and revised its inflation forecast for the first time since Nov 2001.

Attention is turning to this afternoon's US retail sales data, and if US retail sales data today surprise on the upside, it could result in yet more downside pressure on euro-dollar.

Major currencies initially reacted negatively to the Federal Open Market Committee's upbeat statement of the US economy.