Dollar awaits winds of change
The dollar is facing a difficult day, with recent gains over the last fortnight likely to be undermined by US payroll figures and other economic data being released.
Hurricanes Katrina and Rita are thought to have devastated the regional economy with thousands laid off, with the impact potentially greater than the energy price spike seen in the immediate aftermath of the storms.
This morning the dollar stood at 1.2052 to the euro and 1.7688 to the pound.
According to a poll taken by Reuters economists are forecasting job losses of up to 129,000 from Katrina alone, with many analysts voicing warnings about the impact on the dollar - Bloomberg predicts the losses could be even higher at 179,000.
In the UK all eyes are awaiting the announcement from the monetary Policy Committee (MPC) on the interest rate, with a general consensus that the rate will stay on hold.
One drag on the British economy has been the declining industrial production data, as HSBC's John Butler explained to the Financial Times.
"Once again, the UK industrial sector shows an amazing capacity to miss out on global industrial recovery and is proving an important drag on the UK economy," he commented.