Daily currency report

The US dollar sank to a two-year low against the euro on persistent worries over the US housing market and concerns over a trade dispute with China. However, the euro struck a record high against the yen over night due to expectations that single currency's rate advantage will continue to widen.

GBP

The sterling remains well supported across the exchanges. Boosting the pound was a report in the Financial Times that has hinted at a possible tax break for UK firms seeking to repatriate funds top the UK.

USD

The dollar was on the back foot with continued concerns over the US housing market and trade tensions with China. Traders have said the US currency is expected to remain under pressure. The United States accused China at the World Trade Organisation on piracy and blocking access to US films, books and software. Concerns that a weaker housing markets could prompt the Federal Reserve to cut interest rates later in the year also weighed on the dollar.

EUR

Economic releases showed the German trade surplus narrowed more than expected in the month of February, while growth in the French industrial production beat expectations. With only French trade data due for release, we expect traders to turn their focus to this week's biggest event, which is the ECB's rate decision.

JPY

As expected the Bank of Japan kept interest rates on hold at 0.5 per cent. The vote was unanimous as the central bank made no alterations to its economic outlook. The low level on inflation is the primary factor that is holding back the central bank from lifting rates.