Daily currency report

Gloom enveloped markets again as US employment data for May proved to be the worst for several years. The news immediately prompted traders to dump the US dollar, mostly in favour of the euro. The sterling also benefited from dollar weakness, posting moderate gains, although differing interest rate expectations meant that the pound also ended the weak significantly down versus the euro.

Sterling (GBP)

The sterling ended significantly down against the euro, but up versus the dollar in response to mixed data that traders believe will have implications for monetary policy over the coming months.

US Dollar (USD)

The US dollar was sold off across the board after data showed the US economy lost jobs for a fifth consecutive month and unemployment rose at its fastest rate in 22 years, the clearest sign yet that the US economy is stalling as companies continue to come under pressure from spiralling energy costs and the consumer slow down. The data was far worse than investors had anticipated, and consequently wiped out many of the gains made earlier in the week.

Euro (EUR)

The single currency continued the rally began last Thursday following European Central Bank chief, Jean-Claude Trichet's, comments on the likelihood of further interest rate rises in the months to come. The euro also received a boost from weak American data, with investors dumping the dollar in favour of the single currency.

Japanese Yen (JPY)

The yen begins the week under pressure following disappointing services sector data and also the threat of higher oil prices. The price of crude made a record jump on Friday, gaining more than $10 on the day, and taking the price per barrel to a new all-time high of $139.