Forex Trading Tips as UK Unemployment Falls to £2.58m

LONDON, July 19, 2012 /PRNewswire/ --

According to the Office of National Statistics, the number of people out of work in the UK fell to 2.58 million in three months to May 2012.

The fall of 65,000 from the previous quarter may have offered some good news, but this was offered side-by-side with the number of people claiming Jobseeker's Allowance rising by 6,100 to 1.6 million in June 2012.

Here we look at the latest employment figures out of the UK and how you can trade on the GBP/USD with a City Index forex trading account.

Unemployment falls 2.58m in the UK

On Wednesday, 18 July, the Office for National Statistics reported that the number of people unemployed had fallen by 65,000 to 2.58 million in the UK.

However, the report was somewhat a double-edged sword when it was reported that regardless of this fall, those claiming Jobseeker's Allowance had risen by 6,100 in June and the number of people out of work for more than two years rose by 18,000 to 441,000 - the highest levels seen since 1997.

Overall, the number of people in employment rose to 29.35 million - a 181,000 rise.

Following the report, Employment Minister Chris Grayling said unemployment was 'still much too high'.

Trade UK GBP following Latest Figures

Through a forex trading account from City Index, you can take a position across 37 major and minor currency pairs.

Trade through their professional Advantage platforms, including the downloadable Advantage Trader and browser-based Advantage Web.

Following reports that UK unemployment has fallen to 2.58 million, you can speculate on how this may affect the value of the British pound by taking a position on the GBP/USD currency pair for only a small initial deposit.

In the event you expect the fall in unemployment to have a positive effect on the British pound, causing it to appreciate against the US dollar, you can go long and buy.

Alternatively, if you expect it to depreciate following news that those claiming Jobseeker's Allowance has risen - you can go short and sell.

As a result, you will profit in line with every pip the market moves in favour of your position.

However, as a leveraged product - if the market moves against your position, you could incur losses greater than your initial deposit.

Ensure you fully understand the risks involved and learn how to lock in profits through the dedicated forex risk management area on the City Index website.

Start Trading Forex

To start trading forex across a range of trading platforms - including mobile and tablets - you can apply for a forex trading account through the City Index website.

Read More Forex Trading Tips

If you found this article helpful, you may want to read more just like this. You can access a range of forex trading tips, guides and articles through the Forex Trading section of the City Index website.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk for details.

Spread betting, CFD trading and forex trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

SOURCE City Index