Daily currency report

The dollar was boosted as US consumer confidence rose in April to the highest level since the well documented collapse of the Lehman Brothers, of September 2008. The dollar was able to make substantial gains against both the euro and the pound. Elsewhere, the euro was reeling by the shocking revelation that Greece and Portugal's credit ratings were downgraded to a "junk rating". In addition, the pound remains under continued pressure in the build up to the elections on May 6 as it is unlikely that a party will be victorious with a clear majority.

Sterling

Sterling fell against the dollar as opinion polls pointed to an inconclusive result at next week's UK election, which investors fear could delay action to reduce the UK's ballooning budget deficit. Although consistently suggesting the opposition Conservative party will gain the most votes on May 6, it is unclear whether the Conservatives or the ruling Labour Party will have the most seats, and all polls suggest no party will win a majority.

US Dollar

The dollar extended recent gains against the euro, rising to fresh two-week highs and hit a one month high against a dejected pound as home prices fell in February but rose in comparison to one year ago; the latest indication that the housing market is slowly recovering. In addition, US consumer confidence rose in April to the highest level since the collapse of investment bank Lehman Brothers in September 2008.

Euro

The euro fell against the dollar to fresh two week lows as the euro's plight was determined by Greece and Portugal's downgraded credit rating. Standard and Poor downgraded Greek ratings to junk territory and cited qualms over their inability to implement reforms over the high debt burden.

Japanese Yen

The Yen rose against both the euro and the dollar after a downgrade of Greece and Portugal's credit ratings resulted in investors cutting risks. Japan's Nikkei average, however, is widely expected to fall as a tumble on Wall Street and a stronger yen is likely to be the catalyst for profit taking and two days of gains.