The pound dipped against the dollar and the euro this morning as investors await UK labour market data. The greenback reached highs against the euro amid signs of a recovery in the US economy.
Pound Sterling – UK Markets
Sterling dropped to trade at 1.626 against the dollar and 1.117 versus the euro earlier on, with investors expecting UK labour market data to show another increase in unemployment.
Sterling has tried to hold its gains against the euro following the collapse of EUR/USD over the past couple of days, although this morning’s employment figures could rock the boat.
US Dollar – US Markets
The dollar traded near a two-month high against the euro at 1.455 early today on prospects the Federal Reserve will withdraw stimulus measures. Signs that the US economy is recovering have been building momentum leading to the speculation of a withdrawal.
Euro – European Markets
The euro rose 0.2% to 89.53 pence, having earlier dipped to a low for the day of 89.28 pence.
Worries over Austrian banks and the fiscal health of countries such as Greece, pushed the single currency to its lowest in more than two months against the dollar yesterday and its lowest against the pound since November 19th.
Other Currencies – Highlights
Australia’s currency fell against all of its 16 major counterparts after Reserve Bank of Australia’s Battellino said borrowing costs for households and businesses have risen faster than the central bank’s target rate.
The Aussie sank as much as 1.1% to 89.67 US cents, the lowest since November 27th, before later trading at 90.02.
UK’s CPI figure in spotlight, as the Pound value drops
Sterling slumps after lower than expected CPI results