The euro slid for a fourth day versus the dollar as data showed German factory orders fell more than analysts forecast in December, while U.S. reports this week are forecast to indicate the nation’s recovery is gaining strength. The 17-nation shared currency erased earlier gains versus the yen after the Economy Ministry in Berlin reported factory orders dropped 3.4 percent from November. The pound rose against most of its major counterparts on speculation the Bank of England will be forced to raise interest rates to contain inflation. Norway’s krone weakened as crude oil fell and manufacturing in December was less than expected. “The factory numbers have been inhibiting rallies and putting pressure on the currency,” said Jessica Hoversen, an analyst in Chicago at the futures broker MF Global Holdings Ltd. The euro dropped 0.3 percent to $1.3535 at 10:28 a.m. in New York after rising earlier to $1.3627. It touched $1.3509, the lowest level since Jan. 21. The single currency fell 0.2 percent to 111.44 yen, from 111.62 yen on Feb. 4. The dollar strengthened 0.2 percent to 82.31 yen, from 82.18. It touched 82.47, matching the strongest since Jan. 28. The greenback gained versus 13 of its 16 most-traded counterparts as the Standard & Poor’s 500 Index climbed 0.7 percent. Copper rose to a record as investors speculated a U.S. economic recovery is under way. Futures for March delivery reached $4.6375 a pound in New York. U.S. Consumer Credit A report today is forecast to show consumer borrowing in the U.S. rose in December for a third month. Credit climbed by $2.4 billion after increasing $1.3 billion in November, the Federal Reserve will say today in Washington, according to the median forecast of 34 economists in a Bloomberg survey. The dollar gained versus the euro and yen on Feb. 4 as a report showed the U.S. unemployment rate unexpectedly dropped in January to 9 percent, the lowest since April 2009. “The reacceleration of the domestic economy is underpinning the dollar,” MF Global’s Hoversen said. “The data last week was stupendous.” Initial claims for jobless benefits fell to 410,000 last week, from 415,000, data due Feb. 10 is forecast to show. Economists had forecast a 1.5 percent decline in German factory orders, according to the median of 37 estimates in a Bloomberg News survey. Norway’s krone was the worst performer against the dollar as oil futures touched the lowest level in more than a week, $88.11 a barrel in New York. The currency declined for a fourth day against the greenback as data showed Norwegian manufacturing production fell 1 percent in December, compared with a 0.5 percent gain forecast in a Bloomberg survey. The krone weakened 0.6 percent against the dollar to 5.7923, from 5.7558 on Feb. 4. Pound Gains The pound rose as short-term interest rates increased. The two-year gilt yield climbed five basis points, or 0.05 percentage point, to 1.57 percent after reaching 1.63 percent, the most since February 2009. The implied yield on short- sterling futures contracts for December 2011, which anticipates where short-term interest rates will be, rose four basis points to 1.74 percent as traders added to bets for higher borrowing costs. The Bank of England’s Monetary Policy Committee is scheduled to meet on Feb. 10. “Sterling regained some ground at the start of the week, and we would expect further recovery as we move closer to the February MPC meeting on Thursday and especially the quarterly inflation report next week,” Valentin Marinov, a senior currency strategist at Citigroup Inc. in London, wrote in a note to clients. Bank of England A report this week is forecast to show U.K. manufacturing expanded for an eighth month in December. Output rose 0.4 percent after a 0.6 percent gain in November, the Office for National Statistics will say on Feb. 10, according to a Bloomberg survey. On the same day, the Bank of England is forecast to keep its bond-purchase plan at 200 billion pounds ($323 billion) and leave benchmark rates at a record low 0.5 percent, according to all 62 economists in a Bloomberg News survey. The pound strengthened 0.4 percent to 83.95 pence per euro, and 0.2 percent to 132.63 yen. It was little changed at $1.6097. The Australian dollar advanced as job advertisements in the nation rose for a ninth month. Jobs advertised in newspapers and on the Internet climbed 2.4 percent in January from December, when they increased a revised 1.2 percent, Australia & New Zealand Banking Group Ltd. said in a report released in Melbourne. Aussie Gains Australia’s currency rose 0.2 percent against the yen to 83.49, from 83.32. It has gained 0.6 percent against the Japanese currency since the beginning of the year as the global recovery takes hold, damping demand for the safe-haven appeal of the yen. The yen weakened versus the U.S. dollar, Australian dollar and the British pound on signs the global economy is picking up. “While rates everywhere else are likely to go up, people don’t expect Japanese rates to follow,” Paul Robson, a senior foreign exchange strategist at Royal Bank of Scotland Group Plc in London, said. To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Lucy Meakin in London at lmeakin1@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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