Forex outlook:
The dollar slid to a two-year low against the euro and was little changed against the yen on Thursday in thin trading ahead of Friday's U.S. jobs report which may provide clues on the outlook for interest rates. Employment data next week may help determine whether the Federal Reserve will lower benchmark rates from the current 5.25 percent to support the economy.
The non-farm payrolls report on Friday is expected to show the U.S. economy added 120,000 jobs in March, up from 97,000 in February, according to expectations.
The number of U.S. workers filing new claims for jobless benefits rose a larger-than expected 11,000 last week, government data showed on Thursday in a report adding to the mixed economic picture painted by recent data.
Sterling fell today against the dollar after the Bank of England left rates on hold at 5.25 percent and traders trimmed expectations on how far UK rates will rise in the months ahead.
Gains in the euro accelerated after it rose above $1.34, triggering orders to buy the currency, traders said. European Central Bank officials said this week that higher borrowing costs are needed to contain inflation as reports showed strength in manufacturing.
``The European industrial sector is still doing very, very well,'' a senior currency strategist in New York. ``The market is absolutely certain that the ECB will raise the rates.''
The European currency's move may have been exaggerated because it was ``mainly triggered by a lack of volume that magnifies a small move into something bigger,'' said another strategist in New York.
The euro strengthened against 11 of the 16 most active currencies, advancing 0.43 percent versus the dollar to $1.3425 at 12:54 p.m. in New York. It touched $1.3442, the highest since March 2005. The 13-country currency, which began trading in January 1999, reached an all-time high of $1.3666 on Dec. 30, 2004. The euro rose 0.44 percent to 159.32 yen, approaching a record high of 159.65 set Feb. 23, and gained 0.69 percent against the pound, rising to 68.11 pence.
Markets in the U.S., the U.K., Singapore and Australia are closed for the Easter holiday tomorrow. Hong Kong is shut today and tomorrow.
Gold: A weaker dollar and position squaring sent U.S. gold futures prices slightly higher early on Thursday, but trading was quiet ahead of a long holiday weekend.
At 10:25 a.m. EDT (1425 GMT), most-active gold futures for June delivery on the COMEX division of the New York Mercantile Exchange were up $2.10 at $679.50, trading between $676.60 and $681.00.
On Wednesday, the June contract surged more than 1 percent to a five-week high on the back of technical-based and options-related buying, despite Iran saying it would free 15 British sailors, reducing the precious metal's appeal as a safe haven.
Crude Oil: U.S. crude oil futures ended lower on Thursday at $63.925/barrel with Iran tensions easing as 15 British military personnel freed by Tehran arrived back in England, resolving a standoff and easing fears of any near-term supply disruptions from the Middle East.
Attempts to push back prices deeper were thwarted by traders who covered shorts ahead of the Easter holiday weekend.
Gasoline futures recovered from a brief fallback, supported by news of several refinery glitches a day after government data showed inventories last week had fallen for the eighth straight week.
Pool position:
