Daily Currency Report

The greenback slumped to fresh one-year lows versus the euro and sterling. Commodity prices continued their ascent, with spot gold soaring to new 25-year highs to peak at $726/oz, while crude oil stood firm near $73.25/barrel.

GBP
The British pound was the best performing currency, rising strongly against the US dollar, euro and Japanese yen. Conditions are certainly improving in the UK, indicating that should economic data continue to strengthen, the Bank of England may indeed step in to close the growing gap between US and UK interest rates.

USD
The market was looking for an improvement in the April retail sales report - which would defy sentiment for a curtailment in spending as a consequence of rising oil and gasoline prices. Unfortunately for the dollar, the improvement did not materialise, with retail sales for April falling to 0.5 per cent weaker than both forecasts for a rise to 0.7 per cent and the previous month's reading of 0.6 per cent.

EUR
The euro charged ahead hitting yet another 12-month high against the dollar. Hawkish comments continue to pour out of the eurozone, accentuating what could potentially be a big divergence between US and European monetary policy in the second half of the year.

JPY
After at least four consecutive days of strength against all of the majors, the yen has sold off across the board.