Daily Currency Report
Market Overview
The US dollar hit a one month high, overnight, versus the yen after the Japanese currency was dented by a smaller than expected rise in consumer prices that reinforced expectations for Japanese interest rates to climb only slowly.
GBP
In a session with no major British economic data releases sterling came under pressure against a rallying Euro whilst also drifting lower against the US dollar. The stronger than expected German business climate data pushed sterling downwards.
USD
Despite data pointing towards a slowdown, the greenback managed to post gains against both sterling and the euro. This resiliency of the currency can be attributed to traders needing to fund their short dollar positions.
EUR
The single currency was the principal beneficiary of German IFO data that came in stronger than expected. The data will lend confidence to the ECB members over the outlook of growth over the remainder of the year.
JPY
Japanese consumer prices rose by less than expected in July, sending the Yen lower in early trade and causing it to hit a one-month low against the dollar. The disappointing data lends support to the view that the BoJ will only raise interest rates at a gradual pace.
Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22)
www.travelex.com.mt