Daily currency report

With little economic data released, the foreign currency market braced itself for key information due out starting with consumer confidence data in both Europe and the US, as well as European producer prices.

Sterling (GBP)

The pound fell against both the greenback and the euro as figures showed the UK housing market was continuing to struggle. House prices in England and Wales fell 0.4 per cent on the month in March to leave prices 3.6 per cent higher than a year ago, the land registry said. This figure was against a year on year rise of 5.3 per cent in February and further proved the housing market is cooling swiftly.

US Dollar (USD)

With analysts split on the future of tightening from the Federal Reserve the Greenback had a mixed week start. Speculation is high the US central bank will trim its fed funds rate by 25 basis points to 2.0 per cent and signal a desire to hold rates there for the time being. Such an outcome could support the dollar.

Euro (EUR)

The single currency retraced some of its recent gains as weaker than expected German inflation data coupled with a pessimistic economic forecast from the European commission underlined downside risks to growth. The report stated that problems in credit markets, a slowing US economy and soaring commodity prices would curb growth by more than expected this year and next.

Japanese Yen (JPY)

Ahead of the public holiday in Japan and the Federal Reserve's policy decision, Asian stocks and the yen traded in tight ranges as investors held back from the risky bets.