Daily Currency Report

Overview

After the extensive dollar sell-off, the greenback was rescued by the US manufacturing data release. The manufacturing index jumped from 54.8 to a more than expected 56.7, which is why the dollar rebounded.

GBP
The sterling hit its highest point in three weeks against the dollar after upbeat mortgage lending data outweighed the impact of unexpectedly weak growth in Britain's manufacturing sector. This provided support for the pound on a view that interest rates will remain steady.

USD
The ISM manufacturing figure was released, which showed the strength of the US factory sector. The ISM index rose to 56.7 per cent in February from 54.8 per cent in January. The dollar reacted quickly, strengthening against all currencies.

EUR
The ECB has held on for three months to launch another rate hike. The market expects it to continue to signal steady interest rate hikes, possibly on a quarterly basis.

JPY
This time it was China that stole the limelight and not Japan. The country's State Administration of Foreign Exchange announced that they plan on easing some of their controls on money leaving China. The yen consequently sold off, as this encourages outflows and relieves some of the upside pressure on the yuan.

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