Daily currency report

Overview

The sterling ended the session moderately stronger against the euro and the dollar. The Japanese yen remains mired near all-time lows against the euro.

GBP
The sterling rose against the dollar and the euro after data showed a robust housing market in England and Wales, as well as a rise in mortgage lending. Analysts interpreted the data as sterling positive, stating that the news gives the BoE scope to increase rates to 5.25 per cent.

USD
In the absence of any significant economic data, the greenback remained range-bound across the exchanges, finally ending the day slightly down against the pound and the euro. The dollar did temporarily gain following a sharp upward revision of US September leading economic indictors. However, this was not enough to trigger sustained dollar buying.

EUR
The euro remains well supported across the exchanges as the European central bank looks set to increase interest rates again in December.

JPY
There was little reaction to the publication of the minutes of the Bank of Japan's last monetary policy meeting at which the interest rate was held at 0.25 per cent.

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