Daily currency report

The euro posted significant gains across the board with the sterling falling to an eight-week low. UK input price inflation data was weaker than expected and German gross domestic product data exceeded expectations.

GBP

The sterling fell to an eight-week low against the euro as a result of the 0.3 per cent softer than expected UK input price inflation data. The upshot of these figures eased concerns over underlying price pressures. This week's BoE's inflation report is a key indicator and should signal whether there shall be any further hikes.

USD

The dollar slipped against the euro in the anticipation of US inflation data and speeches from Fed officials. Although investors suggest that the dollar needs to cut interest rates to reignite a slowing economy, there have been high readings of inflation.

EUR

The euro posted significant gains against both the sterling and the dollar. Eurozone bond yields have hit multi-year highs due to the view that the ECB will raise interest rates at least once more this year.

JPY

Market expectations for the yen to raise interest rates were dampened due to the release of surprisingly weak machinery orders data, falling by 4.5 per cent in March from the previous month.