Daily currency report

Markets reopen across the eurozone and in the UK after the Easter holidays. Sterling extended its gains made last week, hitting a five week high against the euro and the dollar. The euro remained under pressure dropping against a basket of currencies despite the fact a deal was done in Brussels to rescue Greece from collapse. Elsewhere, the dollar was sold off after the release of non-farm payrolls as positive news sparked a rush of risk appetite induced buying.

Sterling

Sterling hit a five week high against the euro and the dollar, as a new opinion poll showed the chance of a General Election resulting in a hung parliament decreasing. However, analysts warned structural issues in the UK economy would hamper investor's confidence towards the pound in the longer term.

US dollar

The dollar weakened against a basket of currencies over the course of the long weekend. Crude oil surged to the highest level in 17 months after reports of growth in US jobs, home sales and non-manufacturing businesses signalled that the economy continues to recover from the worst recession since the 1930s. The US Labour Department's non-farm payroll report revealed that employers had created 162,000 new jobs in March, the highest monthly number since March 2007.

Euro

With very little data released on the mainland due to the Easter holidays, the euro had very little to trade on. Once more Greece has been the biggest mover for the single currency. The euro fell over the long weekend, despite the fact that a deal was done in Brussels to rescue Greece from collapse, as eurozone ministers appear to have found a solution that produced a few smiles and handshakes, but nothing of any substance.

Japanese yen

The Japanese yen strengthened over the long weekend going into the Bank of Japan's MPC meeting. The central bank began its two day policy meeting, with the expectation that they may raise their assessment of Japan's economy and keep policy unchanged.