Daily Currency Report

In the wake of growing geopolitical tensions and the collapse of World Trade talks aimed at making global trade freer, the markets lacked any real direction. However, the greenback was able to claw back some of its losses, notably against the yen and the Canadian dollar.

GBP
The sterling hit a one-month high against the euro after strong economic data rekindled expectations for a hike in the UK interest rates. Against the dollar, the sterling dropped slightly after an early session high which brought it within a few ticks of Friday's six-week high.

USD
After last week's sell-off, traders were wary of the risk that economic data due out this week could again change the interest rate outlook.

EUR
The euro remained well supported as investors continued to favour the single currency over the US dollar. Italy became the latest eurozone member to display concerns over high oil prices and recent euro strength as the confidence index fell to 96.7 during July.

JPY
Yet again the yen was heavily sold off, hitting a record low against the euro.