The US dollar weakened due to lower than expected housing and inflation data. The euro has risen by nine per cent against the dollar this year and the ECB has indicated further gains could follow if the ECB goes ahead with an aggressive interest rate hike.

GBP
The sterling made gains against the dollar after disappointing US data and upbeat British data. UK inflation rose to two per cent. The positive macroeconomic data added to the flow of recent positive UK data, which have raised expectations for a hike in interest rates.

USD
The dollar lost ground as speculation builds that monetary tightening is coming to an end. The Fed said further rates hike will be based on macroeconomic data and, if inflation falls below its target level, the US dollar will weaken.

EUR
The ZEW survey showed that investors' confidence in Germany dropped by the most in a year during the month of May. This would seem to indicate a lack of competitiveness in the euro area.

JPY
Optimism over the state of Japan's economy appears to be growing for the first time in 15 years as wages and job prospects have improved.

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