Daily Currency Report
Overview
The dollar rallied near two-month highs against the yen amid investors' expectations that a possible rate hike will fail to boost demand for the Japanese currency. A sharp fall in crude oil futures helped the dollar post gains against the euro and Swiss franc.
GBP
As the one economy that is unambiguously healthy, the UK continues to deliver positive surprises with its economic data. Even though the market expects the BoE to announce a rate hike, the central bank is still expected to lift rates later this year.
USD
The dollar posted steady gains as the price of crude oil dropped. Since the US is one of the world's largest consumers of the commodity, price trends are often key drivers in the nation's currency. The steady drop began last week, which depressed the cost of oil to an 18-month low of $54.50.
EUR
The euro sustained above the key levels against the dollar with the support from a run of stronger than expected data from the eurozone. Germany's current account and trade balance both increased substantially.
JPY
The yen weakened across the board though it is widely expected that the Bank of Japan will raise rates in next week's policy meeting, even though it is believed that this would still put the currency under pressure.
Compiled by Gerald De Giovanni, Commercial Foreign Exchange Travelex Malta (Free phone: 800 77 33 22) www.travelex.com.mt