An unexpected improvement in the rate of US unemployment from 7.9% to 7.7% has been announced , with 236,000 jobs created in January and the monthly average running at plus 200,000. This is despite huge concerns over the budget cuts being made that may stop any form of economic recovery in its tracks.

Should we care?

Well yes as the the US is  the top economy in the world ranked on gross domestic product with China recently overtaking Japan for second and third and what happens there effects us here. The US dollar has gained further against the pound, currently at 1.49, so your Florida or Las Vegas holiday will cost you a little more. On the upside our exports will be cheaper.

Sterling remains weak, having lost 6 percent this year against the majority of senior currencies, the UK having suffered the indignity of a credit downgrade and having an economy that is heading for a possible triple dip recession.

With low growth prospects  in the UK, the immediate future for the pound doesn't look that healthy against the euro also standing at 1.14.