The Pound traded down versus the Dollar and made slight losses to the Euro this morning as mixed political polls hampered Sterling’s exchange rate.
The prospect of a hung parliament has hammered sterling down almost 10% versus the Dollar this year alone as investors worry about a weak government's ability to tackle the UK's gaping public finance deficit.
At 0944 GMT the Pound was down at USD 1.5236 and EUR 1.1345.
US Dollar – US Markets
Friday's US Employment figures came out as the best in three years which, along with yesterday's ISM Non-Manufacturing PMI and Pending Home Sales reports, bodes well for the US economy and the Dollar’s exchange rate.
The greenback made fairly significant gains against the Euro and Pound trading at 0.7446 and 0.656 respectively.
Apart from the Federal Open Market Committee meeting minutes, there is no other significant news scheduled to be released from the US today. However, traders will want to pay attention to a number of important indicators later in the week, including the Consumer Credit report set to be released on Wednesday and the Wholesale Inventories report on Friday.
Euro – European Markets
The Euro dropped against the dollar for a third day amid concern European countries including Greece will struggle to raise funds to pay off maturing debt.
The single currency weakened after the Financial Times reported Greece plans to sell bonds in the US as it tackles the European Union’s fiscal black hole. The Euro has weakened 5.3% against the yen and 6.3% versus the greenback this year amid concern Greece’s fiscal shortfall will widen.
At 0957 GMT the Euro traded at 0.881 versus the Pound and 1.3429 against the Dollar.
Other Currencies – Highlights
The Yen rose for a second day against the Dollar on speculation exporters took advantage of the Japanese currency’s slide to bring back overseas earnings.
Australian currency rose to its highest since March 18th against the US Dollar after the Central Bank raised interest rates to 4.25%.
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