Daily currency report

The pound finished close to six-month highs against the greenback after a shocking non-farm payroll figure from the US. In the US, the eagerly awaited non-farm payroll report proved a major disappointment. The actual figure showed a fall of 131,000 jobs, astonishing market participants. The dollar weakened considerably in a sell-off fuelled by further concerns about the recovery of the US economy. The dollar neared three-month lows against the euro and languished close to 15-year lows against the yen. The euro was also a prime benefactor of the poor US jobs data. Investors were happy to sell off the dollar and buy into euro positions despite an unexpected fall in German industrial orders.

Sterling

Sterling continued to flourish against the dollar following a number of positive date releases in the UK. The icing on the cake came in the form of negative non-farm figures from the US which saw the pound hit six-month highs against the US dollar.

US dollar

The data releases last week did little to stave off fears of a double dip recession in the US. The climax to the week was the all important US non-farm payroll report on Friday which proved to be a disappointment. The disheartening payrolls report showed employers axed more than twice the expected amount of 65000 in July. The actual number was a mammoth 131,000 jobs lost in the US economy. The discouraging employment report punctuated another week of mostly soft economic indicators that has reinforced investor fears about the strength of the US recovery.

Euro

The euro enjoyed another strong performance against a beleaguered US dollar. Unexpected negative data from the eurozone’s largest economy had little effect on the single currency. German industrial orders fell to -0.6 per cent month on month, well below the forecasted 0.7 per cent rise. The data does not change the view that Germany’s recovery is gathering pace quicker than expected.

Japanese yen

The Japanese yen continued to rise, coming close to 15-year highs against the US dollar. Investors sought out the currency for its safe haven status as concerns about a double dip recession in the US grew. The yen’s rise has been to the detriment of the Japanese economy which relies mainly on exports.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/.