The pound euro exchange rate is unchanged on the day with GBP EUR at 1.1415. The pound dollar exchange rate is just 0.04% lower with GBP USD at 1.5693. The pound Australian dollar exchange rate is 0.43% lower with GBP AUD at 1.5430. There are indications that volatility is picking up on European equity markets again, this has translated somewhat into morning trade on the currency markets. Declines in equity prices have aided the US dollar which experienced a tough day's trade yesterday. "The British pound enjoyed a strong dau against the USD. As investor confidence grows that a ‘European solution’ will be delivered in the coming weeks, and a year-end rally in equities remains on track, money is likely to continue to flow to currencies such as the pound, the euro and the Aussie at the expense of the USD," says an exchange rate note from IG Markets. With equities surging ahead last night and metals prices rising, it was not surprising to see the pound making good ground against the USD. The enthusiasm for risk has waned a little in Asian trade, with the pound losing some momentum to be currently trading in the 1.5730 range vs the US dollar. Looking at the performance of the pound euro exchange rate we note that it was a case of sideways trading for this pair, amid some mixed UK unemployment data. Data yesterday revealed that there were fewer additional unemployment claimants than expected. However, the unemployment rate actually rose from 7.9% to 8.1%, which represents the highest monthly reading in years.

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