The Swiss franc has seen some heavy sales as investors have been selling the safe haven currency. Weak economic data in Switzerland alongside the lessened chances for an immediate Greek default have reduced the need for the safe haven currency.

Sterling

Sterling remains near 15-month lows against the euro. Economic data enforced the view that the central bank will leave interest rats on hold for the foreseeable future. According to a PMI manufacturing survey the pace of growth has slowed to a 21-month low.

US dollar

Economic data for the US was mixed, but the surprise pick up in ISM manufacturing survey to 55.3 from an expected 52 helped to limit dollar losses. Construction spending -0.6 per cent versus 0.1 per cent expected. It was the sixth consecutive month of declines. As the possibility for a Greek default began to wane attention slowly turned to the US debt ceiling debate. The deadlock in deficit reduction negotiations has prevented the dollar from making strong gains.

Euro

Instead of meeting in Brussels, Finance ministers agreed over a conference call that releasing the fifth tranche of funds to Greece from last year’s bailout plan was acceptable. The payout of €12 billion is expected to take place by July 15. The FinMins also agreed that by mid-September a second bailout package would be completed. The EU governments are working on ways in which to involve private sector in debt rollovers without triggering a “credit event” that would prompt the rating agencies to put Greece in default.

Japanese yen

The Japanese yen is trading lower after equity markets across Asia rise. There is not much in terms of economic data outside of machinery orders and current account figures. Machinery orders are seen rebounding after a sharp decline in the prior month. The yen’s trade on risk aversion flows continues however and economic data is not expected to have a lasting impact on the yen’s direction.

Travelex Global Business Payments Malta, freephone: 800 733 22, www.travelex.com/mt/

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