A steady start in the morning’s session saw sterling rise to ten month highs against the euro, although the pound ultimately lost ground by yesterday’s close. Fears that a hung parliament would be the likely result of yesterday’s General Election weighed heavily on the pound with no single party apparently able to command a decisive Parliamentary majority. As a result, the pound is succumbing to heavy selling pressure.


Thursday was yet another day to forget for the euro as the Greek crisis rumbles on, fuelling deep concern across pretty much all of the major global markets. The single currency fell to 14 min spite of despite a surprise increase in German industrial orders for March. Nevertheless, the euro has been able to claw back some of its losses on news that the Group of Seven (G7) nations will meet later today to discuss the situation in Greece.


Data from the United States played second fiddle to the General Election in the United Kingdom and the never-ending debt issues in the Euro Zone. Weekly jobless claims saw modest falls which, after a positive ADP national employment release on Wednesday, bodes well for today’s all important non-farm payrolls report. The US dollar strengthened as a result and also received a tremendous boost against the pound in the afternoon session on pre-election jitters. The increased likelihood of a hung parliament overnight has seen the greenback soar to 1 year highs against sterling.


With votes still being counted, a hung parliament is still not a definite outcome for the UK’s General Election but as the number of remaining seats shrinks, this pound negative result becomes more and more likely. Although PPI data is due out later this morning, markets will no doubt remain focused on the aftermath of the General Election.


Euro Zone data takes the form of French import, export and trade balance figures alongside German industrial output. However a meeting of G7 nations, including these two European heavyweights, about the debt situation in Greece will also be eyed with interest. Across pond, it is non-farm payroll day. The official measure of unemployment in the US is expected to show a further 38000 jobs created in April and give the dollar yet further reason to strengthen.


• United Kingdom
PPI (Apr)

• United States
Non-farm Payrolls (Apr)
Average Earnings (Apr)
Unemployment Rate (Apr)
Consumer Credit (Mar)

• Euro Zone
France – Budget (Mar)
France – Import/ Exports (Mar)
France – Trade Balance (Mar)
Germany – Industrial Output (Mar)