Daily Currency Report

Overview

Despite relatively poor data released from the UK, the sterling was the biggest mover, gaining over one per cent on the dollar. Dollar weakness was the overwhelming theme in the markets as it seems as though the Federal Reserve is nearing the end of their interest rate hikes.

GBP
UK consumer confidence ticked lower along with the CBI distributive trades report, confirming the market's belief that the BOE still has to lower interest rates once again sometime this year.

USD
The dollar retreated across the board after a measure of growth in the US midwest economic activity came in lower than expected, slipping to 54.9 from 58.5.

EUR
The euro rose further against the dollar on speculation Jean-Claude Trichet will signal eurozone interest rates are headed higher. The ECB will raise its rate by a quarter per cent to a two-and-a-half-year high.

JPY
The dollar hit a fresh one-month low against the yen, due to speculation that the Bank of Japan is ready to ditch its ultra-easy monetary policy as soon as next week and eventually raise interest rates.

Sign up to our free newsletters

Get the best updates straight to your inbox:

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.