Market overview

The dollar eased back, after a comment by a regional Federal Reserve president, seen as dovish on interest rates, outweighed stronger than expected US consumer confidence data.

GBP

Sterling benefited from UK retail sales which rose by 0.4 per cent in December. In line with market expectation, it was the fifth consecutive monthly rise and lessens the chances that the BOE will cut interest rates in the coming months.

USD

The dollar continues to be overwhelmed by concerns that the Fed is nearing the end of its current interest rate cycle. Further to this, a conglomeration of economic data and renewed threats of terrorist attacks on the US ultimately had little impact on the dollar.

EUR

The euro is up against the sterling and dollar. Spending in the third largest European economy fell at its fastest pace with a one per cent contraction.

JPY

The most notable change in the economic assessment of the Bank of Japan is the addition that the steady rise of both domestic and external demand is expecting growth.

Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt