NEWS / Foreign Exchange

the dollar managed to climb 0.3% against the pound

With interest rates decisions in the US, the UK and the Eurozone looming this week, FX markets were generally cautious on Tuesday. However, whilst rates in the US are expected to remain on hold at 5.25%, whilst UK rates are widely anticipated to rise by 25 basis points (with some talking up the prospect of 50 basis points), the dollar managed to climb 0.3% against the pound as traders attempted to play down Fridays??™ disappointing payroll figures.

However, the pound rose 0.3% against the euro, as the single currency was undermined by an unexpected fall in German industrial production in March.

Consequently, the dollar surged 0.6% against the euro ??“ a sign of weakness in the single currency rather than dollar strength.

However, the dollar was unchanged against the yen ??“ up a most 0.1% over the past week.

This meant that the yen was able to snap back a further 0.6% from its recent all time low against the euro. Whilst now up on the week, the yen remains down on the month.

The Swiss franc followed the euro lower, falling 0.7% against the dollar.