Currencies Update

Ahead Jobs Report...

(04/01/1/2008 - 11:00 GMT)Markets are still calm as the data to be released by the U.S. economy concerning the labor market is still due later today. The weakness of the dollar is still what is on investor's minds as dollar-backed assets rushed to record all time highs and the fact remains the Fed's will cut rates further in their next meeting.

The Euro was able to rise once again to fluctuate around the 1.4700s after it had dipped during the session to record a low of 1.4694. The high for today remains unchanged at 1.4753 which was recorded earlier today. Germany released its PMI Services for the month of December coming in at 51.2 lower than the projected reading of 52.4 and prior reading of 53.1. The Euro Zone released its PMI Services for the month of December revised down to 53.1 from the flash estimate of 53.2. The PMI Composite final reading for the month of December was unrevised and remained steady from the flash estimate of 53.3. As for the CPI Flash Estimate annual reading, it came inline with the expected reading of 3.1% but slightly higher than the prior reading of 3.0%.


After the release of strong U.K. data, the royal currency was able to regain some of its strength to soar against the dollar and take the pair up to record a new high for the day at 1.9799 and drag the EUR/GBP down from the new record low it had recorded against the Euro at 0.7485. The UK released its M4 Money Supply final reading for the month November was revised upwards to 0.5% from the preliminary reading of 0.1%. The PMI Services were released coming in at 52.4 higher than the projected reading of 51.6 and previous reading of 51.9.

The USD/JPY pair is trading within very narrow ranges at the 109.30s level. The high recorded for today was 109.58 while the low was 108.77.

Still to come is data being released from the U.S. known as the Jobs report well it might either confirm the fact that the U.S. is heading into a recession or was it just an illusion. So hang on tight and keep a close lookout on the Non-farm payrolls figure to see whether the dollar might rebound or continue it dreadful pattern.