Daily currency report

The European Central Bank and the Bank of England left their interests rates on hold, however, the UK had decided to pump an extra £25 billion in to the economy to expand the government's Quantitative Easing programme. The US dollar has pulled back on some gains due to better than expected economic data.

Sterling

The Bank of England's Monetary Policy Committee meeting, as anticipated, opted to leave interest rates at an all-time low of 0.5 per cent for the eighth consecutive month. Markets showed very little in the way of reaction to the expansion of a further £25 billion into the quantitative easing programme and the sterling regained some ground against the euro and the US dollar.

US dollar

The greenback rebounded from a near one-week low against the euro mainly due to much better-than-expected economic data. While the pace of job losses is seen declining, the rate of unemployment has the potential to spook markets and prompt a round of profit-taking in equity markets. This would likely see the US dollar higher as investors unwind carry trade positions.

Euro

The euro was fairly unfazed by very weak eurozone retail sale figures, a worse-than-expected reading of -0.7 per cent. A pick-up had been expected as funds previously diverted for automobile purchases were expected to come back in the month of September.

Japanese yen

The yen rose for the first time in three days against the euro on concern a US report may show the nation's jobless rate climbed to a 26-year high, boosting demand for the Japanese currency as a refuge. The yen could also come under further pressure on growing concerns about Japan Sovereign risk.