Daily currency report

The euro reached a fresh record high against the yen while the dollar also posted gains against the yen. With little data out in the UK, the pound was the major loser on the market.

GBP

With no significant data to help boost the pound, the currency fell quickly under the weight of the dollar rally. With only few reports up for release, the BoE's expected decision to raise interest rates again in the coming months will not be altered.

USD

The dollar got some support after a US consumer confidence report for May showed a higher inflation outlook for the next 12 months, diminishing expectations of an interest rate cut by the Fed. Investors will probably focus on the release of the minutes of the Fed's last rate-setting meeting for clues on the future path of monetary policy.

EUR

Even though giving back nearly all of its intra-day gains next to the yen, the euro was the best performing currency against the dollar. This resilience was thanks to the much stronger than expected current account data released. ECB officials continue to remain very upbeat with clear indications that the ECB is on track to raise interest rates on June 6.

JPY

The yen rallied versus the euro and dollar after strong data further stoked expectations that the BoJ will raise interest rates in the coming months. Japan's jobless rate has dropped to a nine-year low and April's consumer spending figures beat expectations, supporting Japan's steady economic recovery.