Daily currency report

The dollar again made progress taking advantage of soft data in both the UK and eurozone, to end up against the major currencies. The news that Deutsche Bank reported its first loss in over five years during Q1 further evidence that the fallout from the credit crunch is set to continue.

Sterling (GBP)

The pound fell against both the euro and the dollar after a day of bad data. A private report showed an annual decline in house prices, the first since 1996 and UK mortgages approvals also fell to their lowest levels on record during the month of March.

US Dollar (USD)

Weak consumer confidence data failed to dent the greenback's progress, as investors continued to speculate that the Federal Reserve policy announcement could signal an end to the rate-cutting cycle. While a cut in the cost of borrowing to two per cent has already been priced in, many commentators believe that the central bank will now take a break, and wait for the full effects of the cycle to filter through.

Euro (EUR)

The euro has plunged to nearly one month lows against the US dollar as weak economic data in the eurozone confirms the view that the global slowdown is finding its way to the shores of Europe. European Central Bank President Jean-Claude Trichet stated that the bank decided on interest rates every month on the latest data but so far the economy was holding up well, even though the European commission cut its growth outlook.

Japanese Yen (JPY)

The Bank of Japan kept interest rates on hold as expected as gloomy industrial output, household spending and job figures pointed to weakening growth in the wake of the credit crisis.