The Group of 20 meeting concluded over the weekend. The G20 countries pledged to halve their budget deficits by 2013 and to clamp down on risky bank behaviour without choking off lending. The UK started their deficit cutting programme with the newly-elected government's emergency Budget. Also in the UK, the Bank of England minutes showed the MPC voted seven to one to keep rates on hold at June's meeting. On the back of these announcements, sterling hit six week highs against the US dollar and one-and-a-half-year highs against the euro.

Sterling (GBP)

Sterling reached six-week highs against the US dollar and touch fresh 18-month highs against the euro. While the reading of the emergency Budget may have attracted the most attention, the seven to one vote by the Bank of England's MPC at their June meeting to keep rates on hold attracted the most sterling movement.

US Dollar (USD)

The US dollar closed last week on a downward slide. An encouraging report on US consumer activity helped trigger demand for riskier assets. The greenback had benefited on investor anxiety over the strength of the global recovery - concerns that were reinforced by weaker than expected US growth during the opening quarter of the year. However, risk sentiment rebounded on the back of the best US consumer sentiment reading since January 2008.

Euro

The euro, could not turn a blind eye to debt, equity and money markets, which sent the currency back down to 18-month lows against sterling and a life time low against the Swiss franc. The price for credit default swaps on five-year Greek debt rose to record levels as confidence began to erode once more.

Japanese yen

The yen maintained its status as barometer for risk appetite. Trade figures showed exports declining for the third month in a row, suggesting that tighter policy measures throughout Asia could have an adverse impact on the Japanese export based economy.