Daily currency report

Mixed data ensured that the major currencies traded within recent ranges as weak consumer confidence in both Europe and the US continues to eat away at economic growth prospects. The sterling also enjoyed a relatively inauspicious session, with the bulk of UK data not due out until the end of the week. Elsewhere, the Norwegian Central Bank is expected to hold interest rates at 5.5 per cent at the conclusion of its policy meeting.

Sterling (GBP)

In the absence of any key data releases, the sterling held steady against both the US dollar and the euro. There was some moderately encouraging news from the housing market as the British Bankers' Association reported a slight increase in the number of mortgage approvals during April.

US Dollar (USD)

The US dollar had a mixed session, as new home sales actually rose in April, but consumer confidence slumped to a 16-year low.

Euro (EUR)

The euro lost some ground as markets begin to take notice of eurozone figures. The drop in German GFK consumer confidence sparked some profit taking in the cross against the US dollar. Compounding the move was the subsequent release of French business confidence, which fell to a two-and-a-half year low.

Japanese Yen (JPY)

The Japanese yen fell against most of the major currencies amidst a renewed appetite for risk. The moves were in line with the gains witnessed in the US stock markets, as the Dow Jones rose 0.55 per cent by close of business as Treasuries tumbled. These moves however, could be short-lived as risk factors still linger in the markets.