The pound struck a five-week high versus the euro this morning, extending the previous day's gains, as a new opinion poll showed a Conservative majority.
Pound Sterling – UK Markets
Sterling has extended yesterday's gains on the Euro to touch a five week high, as a new opinion polls showed the chances of a hung parliament decreasing.
At 0939 GMT the Pound’s exchange rates were EUR1.1260 and USD1.5206.
Analysts have warned that structural issues in the UK economy would hamper investor confidence towards the pound in the longer term, therefore confidence remains shaky.
US Dollar – US Markets
The dollar traded near a one-week low against the Euro this morning as signs Asian economies are picking up damped demand for the greenback as a refuge. At 0945 GMT the Dollar traded at GBP0.6976 and EUR0.7405.
Volatility will likely remain high today with investors eagerly awaiting Friday's US Non-Farm Payrolls report. Weekly American Unemployment Claims are to be released at 1230 GMT. Analysts are predicting that today's report will show a drop in unemployment for the week which will boost the Dollar’s exchange rates.
Euro – European Markets
Recent news regarding Greece's plan to combat its severe deficit problem caused the single currency to move upward against most of its counterparts yesterday. However, if predictions regarding the US Unemployment Claims come true, the Euro will have a hard time maintaining its position.
With no significant European publications expected today, the Euro will attempt to hold onto gains made against the Yen and Dollar. At 0950 GMT the euro traded at GBP0.8880 and USD1.3504.
Other Currencies – Highlights
The Yen neared an eight-week low against the Euro as Asian stocks rose on reports showing Chinese manufacturing accelerated and confidence improved among Japan’s industrial companies.
New Zealand’s Dollar slipped against major currencies after the International Monetary Fund said the currency was overvalued and may decline as the nation’s interest-rate advantage over the US thins.
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