Sterling rose this morning to recoup its recent losses as political worries settled. The euro has slipped again and the dollar looks to be moving towards a breakout with US non-farm payrolls data due tomorrow.
Pound Sterling – UK Markets
The pound went up 0.5% against the dollar to trade at USD1.601 and made gains against the euro at 1.113 after an opinion poll settled the political unease that marred sterling’s progress this week.
However, sterling continues to struggle and analysts believe sentiment towards the currency remains negative due to concerns over the UK's mounting debt and weak economy.
US Dollar – US Markets
Since the dollar’s aggressive December rally came to a halt, its progress has been limited and that continues to be the case this morning. The greenback currently trades at 0.627 against the pound and 0.698 versus the euro.
All eyes will be on tomorrows US non-farm payrolls as this data is expected to cause some ripples in the market for major currencies.
Euro – European Markets
The euro fell 0.4% to 89.43 pence this morning and traded at 1.431 versus the dollar.
The Eurozone December unemployment rate increased to 10% from 9.9% and German exports have beaten expectations and were 1.6% higher than Octobers figures.
Other Currencies – Highlights
The yen rose from a four-month low against the dollar after Japan’s Prime Minister Yukio Hatoyama said rapid foreign-exchange moves were “not good,” a day after one of his own ministers said he wanted a weaker currency.
The Japanese currency subsequently climbed to 92.98 per dollar and 133.23 per euro.
British Pound Suffers Losses Ahead of Tuesday's Critical Vote