Daily currency report

The pound fell against a broadly firmer dollar, while the greenback strengthen against the euro as the single currency lost ground against the majors.

Sterling (GBP)
The 2.5 per cent fall in UK house prices for May heightened concerns that a property market downturn may transform into a crash and further weaken the economy. However, a report out from the CBI showed retail sales fell in May, but not as much as had been expected. Despite this data, the pound did not gain versus the dollar, though sterling was able to push higher against a weakened euro.

US Dollar (USD)
The dollar steadied, hovering near a three-month high against the yen after an upward revision to US economic growth figures underscored expectations for the Federal Reserve to raise interest rates this year.

Euro (EUR)
Data out showed the eurozone economy is slowing while inflation remains stubbornly high, and as such many now feel that this mix of data is likely to keep European Central Bank interest rates on hold for some time. Economic sentiment defied expectations that it would fall for the 12th straight month and stabilised in May, but consumer sentiment hit its lowest since September 2005 heralding slowing eurozone growth, and forcing the euro lower against both sterling and the dollar.

Japanese Yen (JPY)
The Japanese economy is showing signs that the problems that have beset both the US and UK markets may have spread to Asia. Unemployment in Japan hit a seven-month high while household spending, industrial output and housing starts fell last month pushing inflation in Japan for another decade high.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/