Daily Currency Report

Market overview

Interest rate rise fever will more than likely continue to grip global markets this week, with speculation the Bank of Japan will raise interest rates, finally ending its zero interest rate policy.

GBP
The UK starts the week with June producer price data out today. The focus will be on whether high input prices are feeding through into output costs, therefore leading to wider inflation pressures.

USD
The dollar weakened against major currencies as US non-farm payrolls come in at 121k for June, considerably below market expectations of 175k. Unemployment remained steady at 4.6 per cent, while the government employment report showed soft job creation, disappointing expectations for a federal-reserve rate increase in August.

EUR
In the eurozone, the major event of the week will be the release of the Central Bank's monthly bulletin, particularly after last week's thinly veiled hints towards a rate rise.

JPY
The JPY rose to a one-month high versus the dollar after economic data bolstered speculation that the Bank of Japan will raise interest rates later this week.

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