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US figures leave many disappointed

US figures leave many disappointed

The high expectations for a positive employment figure out of the US left everyone disappointed on Friday. Payrolls came in at 162k below the 175k expectation and well below a market consensus figure of 185k. Figures like these prove detrimental to markets as a whole and will most probably put any thoughts of stimulus tapering in the US on the back burner for a while. The employment data weakened the dollar by 75 basis points against the Euro and now leaves GBP/USD at 1.5325.

According to Mario Draghi the ECB president, the Governing Council expects European interest rates to remain at their current level for an extended period of time. They said the projected period would likely be two years or more and they forecast unchanged rates until late 2015 at the earliest. This can be done with low inflation giving the ECB the possibility of continuing to stimulate the economy.

Back at home the picture for the UK economy looks a little better in the short term with services and manufacturing data set to improve. The news the market is looking for is the BOE’s expected pledge that interest rates in the UK will also remain low for a very long time.

So exchange rates as we stand at the moment are as follows GBP/EUR at 1.1560, EUR/USD at 1.3290 and USD at around 1.5325.

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