Daily currency report
With no significant data due for release, markets were still hungry for riskier asset buying. Investors' appetite for risk was reflected by rises in commodities such as oil, which reached a year high of $79.05, and gold which came close to last week's record highs. Corporate earnings also contributed to the air of optimism with computer giant, Apple, in particular posting impressive profits. Also higher yielding currencies surged, with the Canadian, Australian and New Zealand dollars coming close to one year highs against the US dollar.
Sterling reached four week highs against the US dollar after the pound had come under pressure following comments from Bank of England's policy maker, Adam Posen to the UK's Sunday Times.
The US dollar continued to suffer as traders' appetite for risk continued. The greenback edged toward the fourteen months lows reached last week against the euro and four week lows against sterling. The dollar also suffered against commodity based currency including the Canadian, Australian and New Zealand dollars as well as posting losses across the rest of the board.
There was no significant economic data due for release in the eurozone, hence, the euro continued to assault the US dollar, closing in on the 14-month high it reached last week, as risk appetite continued. The main focus in the eurozone will be on the two day meeting of European Ministers in Luxembourg, where they are expected to discuss economic and financial developments in preparation for the G20 Finance Ministers meeting between November 6 and 7 in Scotland.
The yen kept the US dollar pinned during the overnight session. Japan's Finance Minister, Hirohisa Fujii, said recent dollar weakness is being driven by a low interest rate policy, even though Washington may want a strong dollar. Also the latest minutes from the Bank of Japan meeting suggested that the central bank is considering an exit strategy from some of the corporate funding programs intended to ease the crisis at the start of this year.