Daily currency Report
Overview
The sterling hit a two-week low against the euro and the dollar as investors continued to scale back expectations of higher British interest rates. Traders have conceded that a September rate hike is no longer plausible.
GBP
After a week of disappointing economic data and the release of downbeat minutes from the BoE, traders have been forced to rethink the interest rate outlook in the UK.
USD
The US dollar managed to cling on to its gains in spite of a disappointing consumer sentiment survey that registered its lowest reading since hurricane Katrina. The feeling is now growing that 17 consecutive interest rate hikes may have taken their toll on economic growth.
EUR
The euro hit yet another high against the yen and also gained against the dollar and the pound. This came in spite of warnings that German business and investor confidence is likely to fall.
JPY
The yen held on to its gains against the British pound but slipped to fresh lows against the euro as the BoJ continue to emphasise that there will be no rush to push interest rates upwards from the current level of 0.25 per cent.