ENM: Exchange rates latest: Pound against US Dollar
The Pound Dollar exchange rate is at 1 GBP = 1.4571 USD at 14:00 in London.
The Pound Euro exchange rate is at 1 GBP = 1.2095 EUR.
The Euro Dollar exchange rate is at 1 EUR = 1.2044 USD.
The news of the afternoon will be disappointing data on US unemployment.
The Labor Department has reported Friday that 431,000 jobs were created last month, but 411,000 were from the government's hiring of temporary census workers.
Economists had forecast employers would add 513,000 jobs - indeed figures were predicted to be the best in years.
The result is riskier currencies and equity markets are looking softer - the Euro being the prime selling target.
"The Euro has weakened significantly against the U.S Dollar this morning, dropping under $1.21 for the first time since April 2006. The single currency has also fallen to a 13-month low versus the Pound, as stocks plunge worldwide on concern that Europe's sovereign debt crisis will worsen. The benchmark Stoxx Europe 600 Index has dropped 0.6% this morning, erasing an earlier gain of 1%, led by a decline in banking shares," says Adam Solomon at exchange rate brokers TORfx.
Solomon goes on to say that the Pound is also benefiting from reports that UK house prices rose in May, albeit slightly below initial forecasts of 7.4%. Investors are becoming a little more positive about the prospects of the UK economy, after recent data has indicated that the recovery is gathering pace.
The UK currency has risen to a high of 1.2088 against the Euro this morning but the decline in stocks has seen the Pound struggle to maintain gains versus the U.S Dollar, ahead of the Non-Farm payrolls numbers this afternoon.
"There will be an element of caution surrounding the Pound as we build up to the emergency budget announcement on the 22nd June. The government need to plug the ever-expanding hole in UK public finances, as the deficit swells to £157 billion, the highest amongst the Group of Seven nations. We have been talking to our clients about the benefits of using a stop order in the market to protect against an adverse move in Sterling," says Solomon.
Euro buyers could secure 1.19+ on a stop order now and slowly raise the order as the Pound continues to appreciate against the single currency.
While having the added security should the market encounter strong resistance at the 1.2195 level, which represents the 76.4% Fibonacci retracement of its rally between October and December 2008.
