Euro steady head of US jobs report

LONDON - The European single currency stabilised against the dollar on Friday as the foreign exchange market awaited a vital jobs report in the United States, dealers said.

By (AFP)

Published: Fri 3 Aug 2007, 6:36 PM

Last updated: Sat 4 Apr 2015, 9:20 PM

The euro was trading at 1.3701 dollars, from 1.3703 dollars late on Thursday in New York.

The dollar stood at 119.14 yen, from 119.19 yen late on Thursday.

Players were turning their attention to key US payrolls data due later Friday, with investors hoping for some good news after recent gloom sparked by US housing market woes. The monthly non-farm payrolls release is published at 1230 GMT.

“The market is likely to remain relatively calm awaiting the US payrolls report,” said analysts at Dutch banking group ABN Amro.

Most economists expect the US government to announce that 135,000 jobs were created in July.

However Wednesday’s ADP national employment report showed US companies added only 48,000 jobs in July, far lower than the 100,000 expected by analysts. The report suggested that Friday’s survey could fall short of predictions.

“A solid report may lend the dollar some modest support, but the risks are a low number leads to further market turmoil,” said Commerzbank economist Gavin Friend.

Calyon analysts added that “participants may read soft jobs data as supporting a rate cut” some time soon.

The US Federal Reserve has frozen American interest rates at 5.25 percent for the past year.

The euro, meanwhile, has been buoyed against the dollar after European Central Bank (ECB) president Jean-Claude warned that ”strong vigilance” was needed against inflation.

That cemented expectations of a quarter-point eurozone rate hike to 4.25 percent in September.

“The use of vigilance is deemed code for “we intend to hike rates at the next meeting’,” added Calyon analysts.

The comments came after the ECB kept its benchmark lending rate steady at 4.00 percent on Thursday as widely expected.

The euro was changing hands on Friday at 1.3701 dollars, against 1.3703 dollars late on Thursday, 163.22 yen (163.35), 0.6730 pounds (0.6724) and 1.6513 Swiss francs (1.6505).

The dollar stood at 119.14 yen (119.19) and 1.2052 Swiss francs (1.2044).

The pound was being traded at 2.0363 dollars (2.0371).

On the London Bullion Market, the price of gold rose to 666.10 dollars per ounce from 665.25 dollars late on Thursday.