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The euro slid for a fourth day versus the dollar as data showed German factory orders fell more than analysts forecast in December, while U.S. reports this week are forecast to indicate the nation’s recovery is gaining strength.
The 17-nation shared currency erased earlier gains versus the yen after the Economy Ministry in Berlin reported factory orders dropped 3.4% from November.
Economists had forecast a 1.5% decline in German factory orders.
The greenback gained versus nine of its 16 most-traded counterparts as the Standard & Poor’s 500 Index climbed 0.8%.
The dollar gained versus the euro and yen on Feb. 4 as a report showed the U.S. unemployment rate unexpectedly dropped in January to 9%, the lowest since April 2009.
The pound rose against most of its major counterparts on speculation the Bank of England will be forced to raise interest rates to contain inflation.
“Sterling regained some ground at the start of the week, and we would expect further recovery as we move closer to the February MPC meeting on Thursday and especially the quarterly inflation report next week,” Valentin Marinov, a senior currency strategist at Citigroup Inc., wrote.
A report this week is forecast to show U.K. manufacturing expanded for an eighth month in December. Output rose 0.4% after a 0.6% gain in November, the Office for National Statistics will say on Feb. 10.
On the same day, the Bank of England is forecast to keep its bond-purchase plan at 200 billion pounds ($323 billion) and leave benchmark rates at a record low 0.5%, according to all economists in a survey.
The Australian dollar advanced as job advertisements in the nation rose for a ninth month. Jobs advertised in newspapers and on the Internet climbed 2.4% in January from December, when they increased a revised 1.2%, Australia & New Zealand Banking Group Ltd. said in a report.
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