- US Dollar Euro (USDEUR) exchange rate currently trading at: 1 USD = 0.7788 EUR (-0.00176, -0.226%)

Despite a late rally, sterling closed below $1.54 yesterday and is little changed this morning as all eyes turn to August’s US non-farm payrolls data. It seems investors are willing to accept slightly more risk, however, the state of the UK economy is putting downward pressure on the pound.

US Dollar Euro (USDEUR) Exchange Rate

Forecasts are predicting a drop in payrolls in August for the third straight month. A lot depends on the payroll numbers that are to be released soon. If the numbers are above estimates, we could see the pound strengthening to $1.50 levels. The pound closed at $1.54 yesterday, and little has changed today as investors await the release of August’s US non-farm payroll data.

Today’s other Forex news:

British Pound US Dollar (GBPUSD)
Not much is happening on the Euro/dollar front as investors are waiting to see the US payroll data before they make their bets. The ECB has decided to keep interest rates at the 1.00% level for the seventeenth month in a row, and Trichet announced the ECB will provide added funds to its safety net program for troubled banks through 2011.

British Pound Euro (GBPEUR)
The pound continued its downward slide against the euro yesterday, dropping to a three-week low as economic figures disappoint investors. The pound opened weaker as disappointing housing and construction data were released, suggesting that a UK economic recovery may be seeing setbacks.

The ECB has decided to keep interest rates unchanged at 1.00%, but Trichet says uncertainty is still prevailing in the economy, though the growth forecasts for 2010 had been upgraded

We will continue to monitor the US Dollar Euro (USDEUR) exchange rate throughout the day.