Daily Currency Report
Overview
The dollar rallied again, gaining support from a recent run of upbeat economic data. The dollar gained across the board, except against the yen. Elsewhere the sterling rallied against the euro and recovered from five-week lows against the dollar.
GBP
The UK economy has begun the New Year firing on all cylinders. However, the pound is set to decline for the first week in three against the dollar on speculation the currency's gains already reflect the likelihood of an interest-rate increase.
USD
The dollar built on previous gains versus most major currencies, as investors bet that talk of nearer-term interest rate cuts in the US had been overdone. Although economic data has been mixed, the recent trend for US economic data has been more positive than expected, supporting the dollar.
EUR
The euro eased from its record peaks against the yen after an assortment of eurozone numbers came in strong, but not as robust as expected.
JPY
The Yen surged higher across the board, pulling further away from two-and-a-half-month lows against the dollar on talk that the Bank of Japan could bump up interest rates as early as this month