Daily Currency Report

Sterling bounced as opinion polls highlighted the growing potential of an overall majority win by the Conservatives in next month's general election. The Daily Telegraph revealed the opposition holds a 12-point lead over its main rival in key marginal constituencies, allaying fears over the possibility of a hung Parliament. The pound also benefited from fresh concerns over Greece's ability to tackle its huge levels of debt. As a result the single currency fell back against sterling and saw recent gains against the greenback completely erased. Sterling also hit a seven week high against the greenback and build on overall gains made over the US dollar this month.

Sterling

Sterling enjoyed a fruitful session as polls revealed for the first time that a hung Parliament may be the least likely outcome of the general election in May. Traders were particularly buoyed by this as uncertainty surrounding a hung parliament, which would almost certainly cripple the UK currency, dissipated.

US dollar

The greenback endured another volatile session against sterling, whilst benefiting from the euro's shortfalls over the Greek bailout package. A string of US data highlighted a surprising increase in jobless claims for the month to 484,000k; which was greater than the 460,000 figure predicted. Furthermore, industrial production for March showed growth of just 0.1 per cent compared to 0.7 per cent figure expected. As a result, stronger gains against the single currency were limited and the monthly slide against the pound continued.

Euro

The euro's recent fight back was completely reversed as fresh concerns arose over Greece's ability to tackle its massive debt. Falls of 0.7 per cent were experienced against both sterling and the dollar as markets continue to view Greece's worrying situation as high risk.

Japanese yen

The Japanese currency fell against its US counterpart but gained against sterling and the euro as Asian equity markets took a hit.

Commercial Foreign Exchange Travelex Malta (Free phone: 800 733 22) www.travelex.com/mt/