Daily currency report

Sterling was still unable to regain any ground against the US dollar or the euro. The US dollar continued to trade higher following its strong performance towards the latter part of last week while the euro was initially weakened by yen strength in the Asian session. The pressure applied by the yen weakened the euro against a strengthening US dollar.

Sterling

The UK looks forward to final GDP figures for Quarter 2, which numbers are forecast to see small improvements, which could initially be supportive to the local currency. There is also the release of the Bank of England consumer credit, mortgage approvals and lending which will be released alongside money supply figures.

US dollar

The US dollar generally traded higher continuing its rich vein of form from the end of last week. Economic data released overshadowed comments made from the G20. The US dollar came off its highs after equity markets moved higher and allowed investors to take on more risk by diverting funds out of the safe haven currency.

Euro

Although the statement of last week from a French official suggested France was not happy with the current level of euro against US dollar could have checked any further euro rise, at least in the short term, the outcome of the German elections took centre stage. Voters elected in favour of Angela Merkel, the incumbent German leader. The euro maintained its strong position against its major competitors as the fear of political upheaval in the eurozone's largest economy was laid to rest.

Japanese yen

After very little activity seen from Japan, the yen rose to eight-month highs against the US dollar on speculation that Japan's new government will allow its currency to appreciate.