Daily currency report
Overview
The dollar was little changed against the euro and the yen amid cautious trading ahead of the holiday period. The sterling lost ground against the dollar and the euro, the Canadian dollar fell and the euro remained mainly unchanged.
GBP
A run of robust data from the retail and housing sectors, as well as signs of rising inflation, has bolstered expectations that the BoE could raise interest rates to 5.25 per cent in the first quarter. This sentiment alone on UK rate hikes has supported the sterling, particularly against low yielding currencies.
USD
The dollar held in ranges after data showed the US economy in the third quarter grew slightly slower than the forecast. Also, the US currency gained little following hawkish comments from Richmond Fed President, who claimed US economic growth should pick up gradually next year.
EUR
The only data released in the eurozone was in Italy, which was the Italian consumer confidence, retail sales and trade balance. The euro stayed static.
JPY
The Japanese yen slumped to an all-time low against the euro, as the pressure on the Japanese currency mounted. The general feeling is that the window of opportunity for a rate hike is closing.