Sterling fell against the dollar after a mixed bag of data announcements. The yen continued to fall against most of its top trading partners, as renewed appetite for risk in global markets and political uncertainty in Japan weighed heavily on the currency. Meanwhile, the dollar rose against most of its peers on the back of positive economic data, which included the ADP national employment report which showed US companies added 55,000 jobs in May.

Sterling

The pound rose against the euro, trading near its strongest level in 18 months. A report showing UK house prices climbed to their highest in almost two years fuelled optimism the economic recovery is solidifying. Sterling also strengthened earlier in the session closing in on a three-week high against the US dollar, before relinquishing some of its gains after data showed the services sector expanded to 55.4 in May, just under the 55.5 forecast.

US dollar

The dollar rose broadly and remained higher versus the yen after ADP Employment Services data showed US payrolls rose by 55,000 in May. US weekly jobless claims fell from 453,000 from 463,000. The dollar was kept mostly on the defensive following the two reports as both numbers fell short of forecasts.

Euro

The euro approached a four-year low versus the dollar as signs that Europe's sovereign-debt crisis will damage the region's banks boosted the US dollars appeal as a refuge. The 16-nation currency fell against most of its major counterparts on speculation the European Central Bank will provide more liquidity to the financial system.

Japanese yen

The Japanese yen weakened for a second day as Japanese businesses cut spending for a 12th consecutive quarter, signalling the export-led recovery has been slow to spread to domestic demand. Finance Minister, Naoto Kan, was chosen to be Japan's next premier as the ruling party strives to repair its fortunes ahead of a national election.