The sterling was by reports of a jump in UK consumer spending and by indications that the Bank of England might not cut its bank reserve rates anytime soon. The gains however, turned out to be short-llived confirming the fragile state of sterling. There has been continued support for growth currencies and the Australian dollar hit a 14-month high against the US dollar before profit-taking reversed most of the gains. The Norwegian crown was also a winner as it hit an 11-month high against the euro. The crown was also up against the dollar, after Norway’s central bank governor said that it may be appropriate to raise interest rates earlier than expected.

Sterling

Sterling maintained higher levels against the euro and US dollar on the back of upbeat Gfk consumer confidence and CBI distributive trades data, however there was a retreat later in the session.

US Dollar

The US dollar has been trading in relatively quiet ranges against most majors despite the array of data released recently. There is a busy agenda with several key economic data releases scheduled, but all eyes will be on the non-farm payrolls release, which is causing traders to remain cautious.

Euro

The euro begins the session under pressure as speculation mounts across markets that policymakers may seek to intervene in markets in order to tackle problems arising from its recent appreciation. Comments from the European Union’s, Joaquin Almunia, that the Euro Group will discuss the single currency’s appreciation at the upcoming G7 meeting this Saturday in Istanbul, sent the single currency lower across the board.

Japanese Yen

There was more good news from the world’s second largest economy as the Tankan survey revealed that business morale has improved further from a record low hit earlier in the year.