Daily Currency Report

The Swiss franc and gold both rose after word that explosions and gunfire were heard at an oil refinery in Saudi Arabia. This put strain on the euro and dollar as oil prices shot up. Saudi security sources later said that they had foiled suicide bomb attacks.

GBP

The MPC minutes yet again showed a vote of 8-1 for no change in interest rates, causing sterling to fall against dollar. The sterling opened weaker this week as investors ignored an upbeat British house prices survey, instead focusing on its weakness against the yen.

USD

Durable goods plunged 10.2 per cent in January as aircraft orders fell short. The figure had very little impact on the USD and is unlikely to affect the Federal Reserve in its decision whether to raise interest rates or not.

EUR

The euro fell against the dollar after a report showed Italian business confidence unexpectedly fell. The ECB has hinted that it is committed to driving eurozone interest rates up from the current 2.25 per cent to three per cent.

JPY

The yen advanced to a one-month high against the dollar and sterling after Japanese officials said the government supports central bank plans to end deflation-fighting policies. The BOJ will stick to its policy of flooding the economy with cash until core prices stop falling.