Daily Currency Report

The dollar fell to a one-month low against major currencies, as it appears to be likely that the Fed will pause in its two-year interest rate campaign. Any pause would come at the same time the ECB is expected to increase rates to three per cent, and after the Bank of Australia lifted rates to six per cent.

GBP
The pound rallied against the dollar for the fourth consecutive day. Despite a drop in the manufacturing sector, traders latched onto the rise in house prices. The manufacturing PMI index fell to 53.8.

USD
Stronger economic data and dollar supportive comments from the new US Treasury Secretary helped to rally the dollar for only a brief period, but all gains were wiped out.

EUR
Price pressures mounted in the eurozone manufacturing sector and growth remained robust, supporting expectations the ECB will step up the pace of rate hikes.

JPY
The yen continues to remain strong against the dollar but has given back some of its gains against the euro and pound. Comments from the Bank of Japan Governor indicated the interest rates are on the up.