LONDON (AFX) - The euro was up against most leading currencies in early trade despite a lack of market moving news, ahead of a speech by the European Central Bank's chief economist, dealers said.
Will Rugg, senior strategist at Standard & Poor's MMS, sees the euro as being in a correction mode following yesterday's sell-off on the euro zone's weak purchasing managers index.
He said: "We are in a period of position adjustment ahead of the next key focus for currency markets, the U.S. nonfarm payrolls figures tomorrow."
The unemployment data for April, due at 1.30 pm on Friday, will provide fresh clues about the health of the U.S. economy, he said. Today's economic data was in line with the recent weaker data from the EMU zone, analysts said.
A composite indicator of French consumer confidence fell to 0 in April from +2 in March.
Rugg said although the single European currency is stronger today, he had doubts about further strengthening because of the weak data. "The data is casting more doubts on the European Central Bank's assertions that the global slowdown in growth will have limited impact on the euro zone," he said.
All ears will be tuned to the ECB's chief economist, Otmar Issing, when he speaks on "The euro and the ECB -successful start- Challenges ahead" at a seminar in London at 11.00 am this morning.
Meanwhile, sterling was stronger in early trade, in line with euro/dollar moves, ahead of the Chartered Institute of Purchasing Managers service sector data, dealers observed.
"The CIPS service sector data coming out is likely to show some more moderation and that the slowdown of global economy is having some spill-over effect in the UK," Rugg said.
The yen was also higher against the dollar, on optimism that the new administration will carry through necessary economic reforms. "The yen is enjoying a bit of a honey moon period as the market is definitely giving the benefit of the doubt to the new Japanese administration so far as their promises over reforms," Rugg said.

London 9.00 am Singapore 12.27 pm
Dollar
yen 121.55 down from 121.56
sfr 1.7219 down from 1.7228
Euro
usd 0.8970 up from 0.8953
stg 0.6244 up from 0.6240
yen 109.02 up from 108.87
sfr 1.5445 up from 1.5431
Sterling
usd 1.4367 up from 1.4346
yen 174.63 up from 174.41
sfr 2.4732 up from 2.4727
Australian dollar
usd 0.5217 up from 0.5193
yen 63.41 up from 63.12
stg 0.3633 up from 0.3619