Daily currency report

Overview

The sterling hit a 15-month high against the dollar and eight-month high against the euro, propelled by last week's surprise UK rate rise. The ECB also raised rates, just as the market had expected, and most analysts believe that another two hikes could follow.

GBP
Sterling stole the headlines in the currency market, surging 1.7 per cent to a 15-month high in trade weighted terms after a surprise UK interest rate rise.

USD
The dollar slumped with the release of weak US labour market data. The closely watched non-farm payroll added only 113,000 jobs in July and the unemployment rate unexpectedly jumped to 4.8 per cent, confirming a slowing economy and igniting hopes for an interest rate pause by the Fed.

EUR
This week traders will be watching German factory orders for signs that the largest eurozone economy is healthily expanding. The ECB will be closely watching the effects of the rate hike on slowing inflation.

JPY
The yen gained against the dollar as Japanese investors received semi-annual interest payments from the US government.

Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt

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