Major financial markets are reacting early Thursday (March 3) morning to word from the Arab League that it is seeking ways to end the crisis in Libya. Heightened revolution and political tension in the Middle East has dominated global news during the last few months. It has also impacted speculation in many investment markets.

Gold prices moved past $1,440 on Wednesday, but have pulsed back to an early Thursday spot rate of $1,422.60 on the New York NYMEX. Oil prices have also dipped a bit. One barrel of light sweet crude oil futures is trading at $101.00 flat, down $1.23 from Wednesday’s settle price.

Quietly, the euro continues its upward movement against the dollar. The European Union currency continues to trade much in line with gains in oil.

One euro nets $1.39425 in early morning New York currency trade. The euro has not traded above $1.40 since November it is now just three pips off its 52-week high of $1.4282.

The European Central Bank just concluded meetings by announcing it is going to leave key interest rates unchanged. The ECB has not made a move on rates since its last decrease in May 2009.

However, recent public commentary from bank officials acknowledges the likelihood that the ECB is going to have to consider a tighter monetary policy in the near future in lieu of growing inflationary pressure.

Currency markets are curious as to what ECB President Jean-Claude Trichet will have to say in the coming days as a possible indicator of where interest rates are headed.

The Fed has given little public indication that it intends to raise rates anytime soon. Therefore, signs that Europe will see rate increases before the US suggests a continued move higher for the euro against the dollar.

Recent jobs data in the US has been mixed, but the Labor Department just announced Thursday morning that weekly unemployment benefits requests were at their lowest level in three months last week. This is good news on the labor front, the most watched sector of the US economy at the moment.