Daily Currency Report

The dollar slipped to a one-month low after a report showed Midwest business activity grew at its slowest pace in more than a year in October. Sterling strengthened versus the majors as another interest rate hike is expected next week despite a decline in retail sales and comments made by the MPC's Governor Mervyn King.

GBP
Sterling hit a 15-month high against the euro after the Nationwide Building Society reported that British mortgage lending jumped another 0.7 per cent in October, however the annual rate of increase eased slightly to eight per cent.

USD
The dollar fell to a one-month low across the board after the National Association of Purchasing Management-Chicago's business barometer dropped to 53.5 from 62.1 in September, below economists' expectations of 58. The only piece of dollar positive news was a rise shown in the employment component of the Chicago PMI report ahead of the non-farm payrolls tomorrow that typically leads to volatility in the currency market.

EUR
Eurozone inflation slowed further in October staying well within the ECB's target range, but consumer inflation expectations rose amid upbeat economic sentiment. The EU's statistics office said inflation fell to 1.6 per cent year-on-year in October from 1.7 per cent in September.

JPY
Japanese Prime Minister Shinzo Abe mentioned that the Bank of Japan would support the nation's economy through its monetary policy. The main objective for the Bank of Japan and the Japanese government is to succeed in ending deflation.