The yen continued to weaken with the dollar remaining a little under pressure after last weeks inflation data. Both the euro and the pound stayed on a strong footing ahead of German investor confidence data and the minutes from June's CB meeting respectively.

GBP

The pound strengthened further, rising 0.3 per cent and 0.2 per cent against the dollar and the euro respectively hitting also a fifteen year high against the yen. Investors are waiting for the minutes release from the BoE meeting had earlier this month. Economists polled expect a seven t to two split against raising rates, any effect from a more hawkish stance may be limited as another rate hike is already firmly priced in.

USD

The dollar remained on the back foot following Friday's softer than expected underlying US inflation data which cooled expectations of any future interest rate hike. The downturn in the housing market has really concerned the Fed and, with economists forecasting a further slow down in figures; the dollar could be heavily weighed.

EUR

The euro rose to another record high against the yen and reached its highest level in more than a week against the dollar. With Japan's interest rates low and the US looking set to hold, the euro could benefit from increased speculation that the ECB will keep raising borrowing costs to keep inflation in check.

JPY

The yen was again punished as the fallout from last week's CB meeting continued to undermine its value. By the close of the session, the yen fell to a 15, 16, a four and a half and an all time low against the Australian dollar, the sterling, the dollar and the euro respectively.