5 January 2007, 16:22  Еuro steadies against the dollar

The euro steadied against the dollar around $1.3098 , keeping in a tight range before the U.S. jobs data. The median forecast in a Reuters poll is for the payrolls data to show a gain of 100,000 jobs in December, but derivatives traders are betting on a rise of only 82,800. "Bad news for the dollar would be anything below 80,000," said Tom Vosa, head of market economics for Europe at NAB. However, analysts said that the strong employment component in the Institute for Supply Management's non-manufacturing survey, released on Thursday, left room for an upward surprise. In Canada, the unemployment rate unexpectedly fell to a 30-year low in December, sparking a sharp rally in the Canadian dollar from earlier one-year lows versus the greenback . The greenback was last changing hands around C$1.1745. In the euro zone, interest rates are expected to rise twice more this year, to 4 percent. Data on Friday showed that business morale in the euro zone hit a historic high in December, supporting the view that the economy is strong enough to withstand tighter monetary policy.

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