Daily Currency Report
Overview
With uncertainty continuing to prevail as to where the Fed will take interest rates next, volatility looks set to continue for the dollar in the medium term. The dollar lost initial gains against the yen. The FTSE has pulled back nearly 500 points in recent sessions and gold prices have fallen to a four-week low.
GBP
The sterling remained in tight ranges against the dollar and the euro, and there's very little data due from the UK this week that could influence trading. The sterling's impressive run has seen it hit a three-year high against the New Zealand dollar and an 18-month high against the Australian dollar.
USD
The dollar gained against most currencies initially in Asian trading. However, these gains could not be sustained and the dollar weakened against the major currencies as the possible interest rate hike in June by the US played heavily on investors' minds.
EUR
Recently the key point of focus among FX traders has been sentiment over global interest rate differences. The euro fell against the dollar and the yen as French business confidence was released slightly down on expectations.
JPY
S&P have upgraded the outlook of the Japanese economy which is a clear indication that the fortunes of the world's second largest economy have taken a turn for the better.
Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt