The pound consolidated slightly against the euro after industry report released yesterday showed UK manufacturing shrank in November at fastest pace since June 2009. Looking ahead to today PMI Construction release headline the economic calendar, with the expectations for the figures to have dropped to 52.0 in November from 53.9 in the previous month. Expect for the pound to be driven by market risk aversion as major release today is US jobs data.
The European single currency gained against most of its major rivals during the Asian session after the IMF said it may receive more funding to combat Europe’s debt crisis. However, the gains in euro were limited before German Chancellor Angela Merkel outlines her stance on the Eurozone debt crisis ahead of a December 09 summit. ECB policymakers will meet on December 8 for a monthly meeting, and market participants believe the ECB will cut benchmark interest rate by at least 0.25%.
The dollar slipped across the board during the overnight session on speculation the US economy is gathering momentum, damping demand for its safe haven appeal. The greenback weakened ahead of the employment report scheduled for today, which is projected to show the pace of hiring in US quickened. Nonfarm payrolls are expected to have climbed by 125K in November after rising 80K the previous month, but the unemployment rate remained unchanged at 9.0%. Expect for the greenback to consolidate further against its major rivals should we see the employment data coming out in line with expectations.
Comments