Concern over the ongoing shakeout in emerging markets pushed the greenback back into favour with investors, with the dollar posting gains across the board as a result. The economic calendar is due to pick up after a slow start to the week, most notably with the release of US durable goods orders and new home sales.

GBP

The sterling traded very tightly again as the lack of any economic data failed to give the market any reason to push it one way or the other. The rest of the month is also looking fairly lack lustre so we should expect to see the sterling trading in response to dollar and euro movements.

USD

The dollar closed slightly stronger despite some initial weakness early on, but downbeat data due could prove sufficient to reverse at least some of the dollar's recent gains. With oil prices rising once more and crude trading over $70 a barrel, the question has to be asked as to just how quickly this series of rate hikes will cease.

EUR

The euro was largely unmoved although it lost some ground against the dollar. The key data release from Europe this week will be the IFO report.

JPY

The credit rating released showing an upgrade will keep the pressure on the BoJ to soon shift from its current zero-rate policy and recognise further recovery in its economy.

Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt