Corporate foreign exchange news

Published by Mark Smith-HalvorsenTwo new reports have added to fears that the UK may witness a 'jobless recovery' in the months to come, with economic growth having little impact on employment rates.Both the Chartered Institute of Personnel and Development (CIPD) and KPMG have declared that despite fledgling gross domestic product growth, the UK should be prepared for further weakness in employment.Speaking to the Times, John Philpott, chief economic adviser at the CIPD, said the jobs market is standing on shaky foundations."Despite the jobs market proving resilient in recent months, this represents a mere pause for breath with the number of redundancies easing in the private sector and spending cuts yet to be felt by large swathes of the public sector," he told the paper.Such news may encourage investors and UK businesses to develop a forex hedging strategy for the pound, as it may come under further pressure in the months to come.Despite jobs market weakness, unexpectedly strong official manufacturing output statistics provided support for the pound last week.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site