Daily Currency Report
Overview
Having suffered versus the pound and the euro, the dollar managed to recoup much of these losses. Elsewhere the Bank of Canada will publish its decision on interest rates, with economists anticipating a rise of 25bp. Similarly, rates are expected to be held at 5.5 per cent by the reserve Bank of Australia.
GBP
The pound lost some ground against the dollar and the euro and was unable to build on last week's gains. It was pepped up somewhat due to some expected upcoming corporate Mergers and Acquisition inflows.
USD
The dollar was sharply higher versus the pound and the euro and has steadied against the yen. Conviction has grown in the market that even if the Bank of Japan ease their ultra-low lending policy, it will not affect the dollar's yield advantage.
EUR
The euro regained ground versus the pound, still buoyed by the recent interest rate hike in the eurozone.
JPY
The yen lost some of its ground against the dollar as the sentiment from Japan slightly altered with respect to an interest rate hike. Following the release of some positive inflation data, the general consensus was that the BOJ would end their policy of almost zero per cent borrowing rates.