Sterling falls against the Dollar after U.S payrolls last Friday

The British Pound fell on Friday as traders took some profits following its losses the previous day, when dismal U.S. payrolls increased risk aversion and pushed the sterling lower versus the greenback. Traders awaited the employment figures and an interest rate meeting by the European Central Bank on Thursday, while many U.S. markets were closed for the Independence Day on Friday. The market will be focused on economic fundamentals this week, which sees more economic data and a policy announcement by the Bank of England. The Pound is in negative territory against the greenback and the euro, The Sterling was also knocked by weak UK gross domestic product data earlier in the week. The GBP/USD is currently trading at $1.6144 as of 8:48am, London Time.

The Canadian dollar dropped after the U.S. reported a larger than forecast number of job losses, raising concern that an economic recovery is slower than thought and sending crude oil below $65 a barrel. “The loonie is flying lower,” said Yanick Desnoyers, assistant chief economist in Montreal at National Bank Financial, a unit of Canada’s sixth-biggest bank. “It should weaken a bit further in the short run because commodity prices are falling.” He predicts the Canadian dollar will decline to about C$1.19 by year end before starting on a “rising trend” early next year amid a global economy recovery. Canada’s dollar appreciated against greenback in May the most in60 years. However it fell more than 6 percent against the U.S. dollar last month. The USD/CAD is currently trading at 1.1645 as of 8:57am, London Time.

The greenback and U.S. Treasuries are both likely to fall as soaring government debt in the world’s biggest economy undermines confidence in its assets, according to Jim Rogers, chairman of Rogers Holdings. “The government is printing lots of money and borrowing even more; that’s not the basis for a sound currency,” he said in a telephone interview today from Singapore. “The idea that anybody would lend money to the U.S. government for 30 years at 3 or 4 or 5 or 6 percent interest is mind-boggling to me.” Rogers, the author of books including “Investment Biker” and “Adventure Capitalist”, said he holds fewer dollars than a year ago and plans to “short U.S. government bonds someday.”

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