Positive data and higher stocks enabled the single currency to consolidate over $1.50

A broadly weaker US dollar dropped 0.5% to the euro yesterday as positive talks in Dubai encouraged demand for higher-risk assets.

• The US dollar came under pressure as concerns eased about Dubai's debt-related problems, which supported a rebound in global equity markets, reducing haven demand.
  
• Leading European indices erased Monday's losses, gaining over 2.0% on the day. The US markets followed suit, opening the session with gains beyond 1% as fears from Dubai World's debt crisis waned with the UAE Central Bank offering financial support to troubled banks in the region.
  
• The dollar trimmed its losses slightly in the afternoon through after the US ISM Manufacturing PMI Index declined to 53.6 in November from 55.7 in October, a somewhat larger decline than the 55.0 expected by the analysts.
  
• The data did show that manufacturing activity continued to expand in November though, limiting the haven appeal.
  
• Markets will be watching an important US employment figure released today at 13:15, which is expected to show that 155,000 jobs were lost in November, a near 25% improvement on October.