Daily currency report
Overview
The USD clawed higher against most major currencies, halting a nine-day decline, although the outlook remained negative in the near term. Elsewhere the Australian dollar dropped across the board after a government report showed that inflation was slower than expected.
GBP
The sterling eased against the dollar slipping below key levels as last week's rally to 26-year highs started to flag. The sterling was also weaker against the low yielding yen, which had received an early boost following Standard and Poor's decision to upgrade its sovereign debt rating.
USD
The dollar gained across the board in generally light trading, recovering from last week's sell off, remaining however mired near a two-year low against the euro. Sentiment surrounding the greenback remains negative, however, as speculation grows that the Fed may have to cut interest rates at least once this year to stimulate a slowing economy.
EUR
The euro hit session lows against the dollar but this was more a result of a dollar recovery than Euro weakness. The markets shrugged off the first round of French presidential elections from the weekend but investors may become slightly more cautious about buying euros ahead of the final round on May 6.
JPY
The yen gained for a second day against the euro and the Australian dollar on speculation that the BoJ will this week forecast stronger economic growth, giving policy makers room to raise interest rates, should they want to.