Daily currency report
The US dollar fell across the board as the euro made gains against the sterling. In the UK the Confederation of British Industry had improved from the March figures in April. Negative data came from across the pond as housing data showed the pace of...
The US dollar fell across the board as the euro made gains against the sterling. In the UK the Confederation of British Industry had improved from the March figures in April. Negative data came from across the pond as housing data showed the pace of existing home sales fell 3.0 per cent in March.
Sterling
The pound rebounded from the lows hit against the Greenback due to an increase in risk appetite. Elsewhere, data showed that factory orders fell by more than had been expected. The Confederation of British Industry's monthly index showed factory activity had slightly improved, to -57 in April, compared to the March's figure of -58. However, the markets had forecast the figure to improve to around -54.
US dollar
The US dollar fell against a basket of currencies triggered by investors dumping the safe haven USD. Existing home sales fell three per cent in March to a much lower-than- expected rate of 4.57 million units while the weekly jobless claims number rose to 640,000.
Euro
The euro gained against the sterling as the eurozone purchasing managers' index for the manufacturing sector increased to 36.7 in April, its best reading in six months. Nevertheless, the single currency remains vulnerable as the expectation is that the European Central Bank is set to deliver a quarter point rate cut at the start of May.
Japanese yen
The yen continued its revival hitting four week highs against the dollar and gained against a basket of currencies, as the unwinding of money-losing positions continued. This is in sharp contrast to February and March as investors bought commodity currencies and other majors are expected to benefit once the global economy picks up from its current depression.