Dollar Drops Following Jobs Data

The dollar is suddenly sharply lower following the release of the much awaited US non-farm payroll data. The figures show that US employers cut 85,000 jobs last month, far worse than the 8,000 drop analysts had expected.

The pound is also gaining on ideas that the Bank of England will end its Quantitative Easing programme in next months MPC meeting.

The general sentiment is that UK GDP will come in positively at the end of this month and this will persuade the Bank Of England to pull the plug on the life support for the UK economy.

In addition the pound is also garnering support from the publication of an opinion poll in the Sun which emphasizes the extent of the Tory lead after the failed coup to oust Brown. This is particularly significant for sterling as it decreases the possibility of a hung parliament.