Daily currency report

The market was dominated by the release of this month's BoE policy minutes. After last month's unanimous vote to leave interest rates on hold, a split 5-4 vote to keep rates on hold this month and Mervyn King's comments indicated that an interest rate rise is expected next month.

GBP

The sterling rose against the dollar and the euro, supported by the release of this month's BoE policy minutes. The unexpected split decision provided some support for the pound, pushing it up against the euro and the dollar, and continuing to make highs against the yen.

USD

In the absence of any US data, the dollar fell slightly after the release of the BoE minutes. Continuing with the housing theme that has dominated the US markets since the beginning of the week, the only indicator was the MBA's weekly mortgage applications figures with filings for home loans falling 3.4 per cent through the week of June 15.

EUR

The euro strengthened briefly against the dollar on the back of slightly higher-than-expected German CPI which came in at a rise of 0.3 per cent for May, suggesting the ECB will continue to increase interest rates this year. The euro fell sharply against the Swedish, as it was sold off after the Riksbank raised rates by 0.25 per cent and also indicating that further interest hike is on the way.

JPY

The yen's value continues to fall to near-record lows as the carry trade trend is further cemented by speculation that Japanese interest rates will remain at the current level through the summer.