Sterling has strengthened this Morning against the Euro despite positive economic data coming out of Europe and the general concerns over the UK’s long term position within Europe following Prime Minister David Cameron’s defeat in the House of Commons earlier this week in a vote over EU budget contributions. German, French, and EU Markit Manufacturing PMI figures released this morning all came out above market expectations yet the Euro has still weakened against the Pound following the UK PMI Construction figure of 50.9 that well and truly surpassed market expectations of 49.1.
The Dollar has risen against both Sterling and the Euro this morning as markets price in expectations that US economic data being released this afternoon will be positive. US Nonfarm Payrolls, Average Hourly Earnings, and the Unemployment rate are all due to be released at 12:30 GMT and are expected to show that employers increased hiring last month, continuing the recent trend of positive US data. Markets and politicians will be taking this as confirmation that the recovery of the US economy is underway, convenient timing for President Obama who will be hoping that these positive figures, and an accomplished handling of the aftermath from Tropical Storm Sandy, translate into actual votes.
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