Daily Currency Report

Strong retail sales figures helped sterling close in on a five-week high against the euro. The dollar also enjoyed a good session as weekly jobless claims decreased. An upbeat Tankan survey of manufacturing sentiment in Japan failed to boost the beleaguered yen.

GBP

The pound posted strong gains against the euro as traders were buoyed by the resilience of the British consumer as strong retail sales figures will give the BoE scope to raise rates as early as February next year.

USD

The US dollar maintained its moderate recovery as weekly US jobless claims dropped to 304K. The data was the latest in a string of reports showing that even though the housing market is in decline, the greenback was able to post fresh gains against the single currency.

EUR

The single currency drifted lower against both the dollar and sterling. However, this is set to change as consumer inflation data and industrial production data are up for release.

JPY

The yen edged down against the dollar and hit eight-year lows versus the pound after an upbeat Tankan survey did nothing to alter expectations that BOJ will keep interest rates on hold next week.

Compiled by Gerald De Giovanni, Commercial Foreign Exchange Travelex Malta (Free phone: 800 77 33 22) www.travelex.com.mt