Daily currency report

The US dollar tumbled broadly after healthy looking prints on manufacturing activity from a number of major economies encouraged an early dash for risk. The data follows similar reports from China, Australia, Japan and UK which have all helped ease worries over global growth prospects. The British pound took advantage of improved sentiment, further supported by better than expected UK manufacturing figures while a drop in unemployment in Germany helped the euro recover from recent record lows.

Sterling

Sterling began 2012 positively after positive news from manufacturing reports across the globe encouraged risk taking. Sterling benefited immediately, rising by as much as one per cent against the US dollar.

US dollar

The US dollar tumbled across the board as positive manufacturing data and the minutes from the Federal Reserve confirming that it will continue to support ultra accommodative monetary policy, reduced the demand for safer investments. The US currency tumbled to two-month lows against the Japanese yen and Australian dollar.

Euro

The euro caught break, rising through key technical resistance levels against its major rivals thanks to a broad flight into equities and higher yielding currencies. Positive German unemployment figures and a relative calm in European bond markets supported the euro’s rebound from record lows.

Japanese yen

The yen jumped to near seven-week highs versus the US dollar as US policy makers signalled their willingness to keep interest rates near zero and pump more new money into the financial markets.

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