The euro has failed to grab on to the markets’ cautious push for risk, following dire eurozone unemployment figures and after Europe gave investors no real signal about Greece’s ability to comply with its bailout requirements. With US markets fully open again after superstorm Sandy, the extra liquidity flows may also help to thrust prices around. Nevertheless, the US dollar’s movements still seem restricted before US elections but key US data over the coming days should keep traders moving. Weekly jobless claims and ADP’s monthly employment survey will give investors something to assess prior to non-farm payrolls figures. The yen is likely to have another busy night to look forward to with the Bank of Japan releasing its meeting minutes while the pound’s latest sprint will be vulnerable to a sharp slowdown after UK PMI survey.
Sterling
Sterling is climbing over a weakened euro and has quickly moved to within reach of four-week highs. However, the pound could look a little fragile again after UK manufacturing PMI release. Nationwide said that its gauge of UK house prices gained last month, but CIPS’ latest survey on British manufacturing is estimated by analysts to register a worrying decline. Forecasters have October’s print down to show 48.0, losing from 48.4 in the previous month and highlighting an industry stuck in contraction.
US dollar
The US dollar has put on some weight against the euro and could break out of very narrow trading ranges against its main rivals, after Europe’s latest disappointment regarding Greece and weak US Chicago PMI survey pushed investors into safer assets. From the other side though, better-than-anticipated Chinese manufacturing PMI has restored a bit of confidence in currency markets, which is pressing the US currency down against units such as the British pound.
Euro
The euro looks to have hit another weak patch and opens sharply lower against the British pound, after a call between euro area officials ended with no significant progress on Greece’s fiscal problems. Athens announced that it will probably suffer a sixth year of recession, which means the country’s fight to implement tougher austerity is forcing its international lenders to hold back on additional financial aid. The single currency is also under pressure following eurozone unemployment data, which subdued the markets’ response to strong German retail sales figures.