Sterling rose this morning, boosted by selling in the dollar ahead of US employment data due later today. The euro slipped 0.4% and Japan geared up to release a new stimulus package.
Pound Sterling – UK Markets
Overnight sentiment for sterling remained negative, in part due to a news report that creditors of Dubai World are expected to reject a standstill agreement proposed by the company. However, by 9:00 GMT the pound was up 0.6% to USD1.662 and now trades against the euro at 1.098.
Sterling is poised to end the week slightly higher than both the dollar and the euro and has well and truly recovered from lows hit last week due to the Dubai fiasco.
US Dollar – US Markets
The dollar dipped against major currencies this morning ahead of the US government's monthly employment report. The greenback trades against the pound at 0.60 and 0.66 versus the euro.
Euro – European Markets
The euro slipped 0.4% to 90.65 pence this morning, staying below a five-week high of 91.54 pence touched earlier in the week.
The single currency is looking for a second weekly gain versus the dollar at 1.506 on speculation a European Central Bank official speaking today will signal further cutbacks in its emergency stimulus program.
Other Currencies – Highlights
The yen headed for its biggest weekly decline in four months against New Zealand’s dollar before the US report forecast to show the nation’s job losses slowed, spurring demand for higher-yielding assets.
Japanese currency has fallen broadly this week, reversing its surge the previous week, as the Bank of Japan took steps to attack deflationary pressures.
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