Comments from eurozone officials hint that leaders might finally deliver a bold and wide-ranging debt fighting plan. Sterling tracked the euro higher as investors continued to seek profit-making opportunities following robust data from Japan and China which helped to encourage more risk taking.

The pound was unscathed thanks to relatively few market-moving headlines. In anticipation of the euro area’s second and more critical summit, trading activity was relatively restrained although sterling did experience a sharp fall against the Australian dollar. Technical factors provoked the 1.3 per cent decline as investors continue to seek profit-making opportunities amid so much uncertainty.

US dollar

The US dollar fell to fresh six-week lows against both the euro and pound as investors question the size of their dollar deposits ahead of the US Federal Reserve’s November policy meeting. The Fed is expected to embark on yet more asset purchases, dubbed “QE3”, in order to promote growth and reduce unemployment. The expected stimulus shot will naturally have a currency-devaluing effect on the dollar and could be a factor supporting its fall to a record low against the Japanese yen.

Euro

appears to be very close to finalising a wide-ranging solution to the sovereign debt crisis. Various leaks to the media suggest that has backed down against over the role of the European Central Bank as part of the new solution while pressure is now mounting on to ramp up its austerity plans. Comments from both German Chancellor Angela Merkel and French President Nicolas Sarkozy seem to be more in step and markets are now preparing themselves for some overwhelming numbers in terms of emergency funds.

Japanese yen

Jun Azumi, ’s Finance Minister, fired another warning to investors regarding what he calls the yen’s “excessive” rise. Mr Azumi informed markets that Japan is preparing more action should its currency unit continue to firm not on fundamentals, but on speculation.

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

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