The euro gained versus the dollar to the highest level in almost a month as German Chancellor Angela Merkel said she’s committed to the shared currency and European Central Bank officials backed the creation of a euro-region finance ministry.
“We don’t have a euro problem in Europe,” Merkel said in a speech in Singapore today on the final day of a three-day Asia trip that also took her to India. “We have more of a debt problem. Financial markets doubt whether some EU states can manage their debt in the long-term.” Germany is committed to the euro, which is stable, she said.
The dollar dropped against the majority of its most-traded peers as weaker economic data, including higher-than-forecast jobless claims, added to speculation the nation’s recovery is slowing. The yen was lower against the euro as Japan’s Prime Minister Naoto Kan survived a no-confidence vote after offering to step down once his work to lead a recovery from March’s earthquake is accomplished.
EUR/USD: on results of yesterday's session the pair has grown in area $1,4490.
GBP/USD: the pair shown high in the field of $1,6420 then decreased and finished session in the field of $1,6370.
USD/JPY: the pair shown low in the field of Y80,60 then grown and finished session in the field of Y80,90. This morning also sees the release of the final services PMI data, including France at 0748GMT, Germany at 0753GMT and the main EMU release at 0758GMT, all of which are expected to confirm the preliminary estimates.
US data starts with the main event for Friday, as at 1230GMT, Non-farm payrolls are expected to rise 190,000 in May, with private payrolls seen up 210,000. The unemployment rate is forecast to fall to 8.9% after rebounding to 9.0% in April. Hourly earnings are expected to
post a 0.2% rise following the 0.1% rise in April, while the average workweek is forecast to hold steady at 34.3 hours for yet another month. However, the labour market data isn't the only major piece of US economic data due Friday, at 1400GMT the ISM non-manufacturing index is expected to rise to a reading of 54.0 in May after falling sharply in April.