US dollar claws back losses from pound's sharp rally

The pound weakened considerably against the US dollar on Friday, falling 1.96 cents (1.21%) to finish the day at $1.5978.

• In early trading on Friday, sterling weakened against the dollar as the uncertainty surrounding the UK’s political situation intensified.
  
• Better-than-expected US employment data further extended the pound’s falls on Friday afternoon, despite the overall jobless rate rising to 9.4%. Government data showed the US shed 345k jobs in May, well below the 540k expected by economists.
  
• In trading so far today, the pound has continued its slide against the greenback as speculation surrounding the future of Prime Minister Gordon Brown resurfaced. Last night, Labour endured a drubbing in the European elections after it attracted just 16% of the national vote.
  
• There are no major announcements due in the UK or US today.