A string of encouraging data releases from across the globe reduced fears of a sharp slowdown in major economies last week. News from several major economies including China, Australia, the eurozone and the US helped improve investor sentiment.

Sterling

Sterling did manage to regain some lost ground against safe haven currencies but suffered further losses against the euro. UK data added further pressure on the currency with investors bracing themselves for sharp slowdown in UK economic activity for the next quarter.

US dollar

Although the US dollar did not manage to post any significant gains, upbeat data helped ease concerns over a possible double-dip US recession. US Non-Farm Payrolls came in much better than forecast and helped spark a pick-up in risk appetite in both currency and equity markets.

Euro

The euro rose to two-week highs against the US dollar and over three-week highs against sterling. Solid local data coupled with a better than expected US jobs report helped support the single currency. Eurozone services PMI for August came in at 55.9, above the expected 55.6. Meanwhile, retail sales rose 0.1 per cent in July which marked the third consecutive monthly improvement.

Japanese yen

The safe haven Japanese yen opened at lower levels against higher-yielding currencies following last week’s improvement in investor sentiment. Also weighing on the currency is the possibility of further monetary easing and intervention threats as the Bank of Japan’s two-day policy meeting gets underway. Markets will anticipate further communication regarding the BoJ’s recent policy actions and their current stance on the strength of the yen.

Commercial Foreign Exchange Travelex Malta, freephone: 800 733 22, www.travelex.com/mt/