Daily Currency Report

The dollar reversed its recent declines as stronger than expected economic data forced some investors to buy the currency back after selling it short. The dollar was also helped with the news that UK retails figures fell by 0.3 per cent.

GBP
The sterling hit a two-week low against the euro and also fell versus the dollar after a surprise drop in British retail sales caused many markets to reassess the chances of another rate rise this year following August's hike.

USD
The dollar recovered some ground, reversing two days of decline. Even with the robust data, many markets are expecting the Federal Reserve to keep interest rates unchanged at its next meeting in September.

EUR
Most eurozone traders are focusing on the CPI survey. Consumer prices actually declined with the consensus figuring in unchanged levels for the month. The euro hit a record high against the yen on expectations that the ECB will continue raising rates.

JPY
The yen climbed against the dollar at first only to pull back in the afternoon following the release of the manufacturing report.