European session: investors awaited at US employment data

Data:

08:30 UK PPI (Output) (September) unadjusted 0.3%

08:30 UK PPI (Output) (September) unadjusted Y/Y 6.3%

08:30 UK PPI Output ex FDT (September) adjusted 0.3%

08:30 UK PPI Output ex FDT (September) unadjusted Y/Y 3.8%

08:30 UK PPI (Input) (September) adjusted 1.7%

08:30 UK PPI (Input) (September) unadjusted Y/Y 17.5%

10:00 Germany Industrial production (August) seasonally adjusted -1.0% -1.0%

10:00 Germany Industrial production (August) not seasonally adjusted, workday adjusted Y/Y 7.7%

The euro headed for a weekly gain versus the dollar on speculation financial support for European banks will help stem the region’s debt crisis.

The euro rose after the European Central Bank said yesterday it will reintroduce yearlong loans and resume purchases of covered bonds to encourage lending.

The pound rose on optimism the Bank of England’s decision to reactivate its bond-purchase program will help revive the U.K.’s faltering economy.

Losses in the dollar and yen were tempered before U.S. reports today forecast to show a gain in unemployment in September was not enough to bring down the jobless rate.

Employment climbed by 55,000 workers after no change in August, according to the median forecast of economists. The jobless rate was 9.1 percent for a third month, according to the forecasts.

EUR/USD: the pair holds in $1.3400-$ 1,3460 range.

GBP/USD: the pair dore above $1.5500.

USD/JPY: the pair holds in Y76.55-Y76,75 range.

The main focus is on US data at 1230GMT when nonfarm payrolls are forecast to rise 80,000 in September after the flat August reading, but the unemployment rate is expected to rise to 9.2%. An absence of the Verizon strikers should be a key factor in the payrolls rebound. Hourly earnings are seen up 0.2% after see-sawing sharply in the last four months. The average workweek is expected to hold steady at 34.2 September. Wholesale Inventories follow at 1400GMT.