Sterling hit a nine and a half month low against the dollar on political concerns whilst the euro eyed stability amid the possibility of a support deal for Greece.
Pound Sterling – UK Markets
Sterling suffered under broad selling pressure this morning after weekend polls showed a growing possibility that an upcoming general election may result in a hung parliament.
The pound hit a nine and a half month low against the dollar in earlier trading, falling as far as USD1.5096, its weakest since mid-May 2009. At 0958 GMT sterling traded at 1.5117 against the greenback.
A hung parliament will harm any plans to cut the country’s deficit, which will keep the pressure on sterling. Movements in the Euro-Zone will also be of interest to those trading sterling.
US Dollar – US Markets
Non Farms Payrolls week should cause a flurry of activity where the dollar is concerned as will a vast influx of news from elsewhere.
Australia, Canada, Great Britain and the Euro-Zone will all publish their monthly Interest Rates desiccations. And, with the US Non-Farm Payrolls expected on Friday, an extremely volatile week is expected top present plenty of unique opportunities to profits from the dollars movements.
This morning at 1010 GMT the greenback traded at 0.7354 versus the euro.
Euro – European Markets
The euro was steady against the dollar in earlier trading today, as signs emerged that a support deal for Greece may be near.
The single currency climbed around 0.6% against the pound, and at 1012 GMT was steady at GBP0.8995 and USD1.3598.
There is other news that European Union Monetary Affairs Commissioner Olli Rehn will today push Greece to deepen planned spending cuts to reduce its budget deficit.
Other Currencies – Highlights
The yen fell against higher- yielding currencies including Australia’s dollar after Japan’s government increased pressure on the central bank to expand monetary easing to fight deflation.
The Aussie drew support earlier from higher copper prices after Saturday's earthquake in Chile, but data showing the pace of Chinese manufacturing eased last month capped gains in the currency.
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