Interest rate decisions are likely to dominate trading again, with announcements due from the Reserve Bank of Australia and the Bank of England's Monetary Policy Committee.

GBP
The sterling edged up against the euro after robust British service sector data reinforced expectations of an interest rate hike this week. Against the dollar, the sterling was down as traders took profit following surprisingly strong revisions to US jobs data.

USD
It was good news for the dollar following the release of the US non-farm payrolls report. The data reversed some of the dollar's declines, as traders capitalised and took profit. The news also served to reduce expectations that the Fed will move to ease monetary policy early in 2007.

EUR
Growth in European service industries is thought to have accelerated in October as lower oil prices led to increased spending. If confirmed, the news is expected to pave the way for further interest rate hikes.

JPY
The yen remains on the defensive against the other major currencies as investors continue to favour higher yielding currencies such as the US dollar. With the current Japanese interest rate at 0.25 per cent, there is little incentive for traders to buy the yen.

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