The US Dollar had one of its worst days in some time yesterday falling against most of the Majors. The Euro lead the way managing to climb from around 1.31 to above 1.34 in a day although it has come off a little this morning.

GBP/USD - Both currencies are weakening but USD is weakening faster. If you are exporting and being paid in USD - now might be a good time to ocnsider locking in a forward contract price. This will ensure your profit is protected.

The US Fed kept interest rates on hold last night but some details in their statement were picked up by investors as being negative for the USD. The Fed said that the recovery was “likely to be modest in the near term” which was to be expected.

Sterling was hit yesterday by new Bank of England data showing a slowdown in the UK recovery. BoE data showed that lending to UK businesses fell for the fifth month in July and home loan approvals are at the lowest in more than a year.

Little data out on Friday changed investor sentiment going into the weekend with US inflation coming in unchanged at 1.1%. The Reuters Michigan Consumer Sentiment Index also came in quite weak on Friday afternoon at 66.6, lower than the expected 70.3 and shows a drop in consumer confidence in the...

The Euro has found strength again as sentiment improves and fears on sovereign debt wane. The Euro saw a 1 month high against the USD in the early hours of this morning at 1.3130 and GBP/EUR is struggling to get back up toward the 1.20 mark.

The recent intervention by the Bank of Japan into the value of the Yen seems to have worked but markets are unsure of where it will go now. JPY has jumped back up above 85 against the USD and 133 against the pound putting at least a temporary stop to...

The USD was hurt overnight on new speculation that the Federal Reserve are going to extend the quantitative easing program pushing GBP/USD above 1.55 and EUR/USD above 1.30 although they have both fallen back slightly. US retail sales figures for August gave the USD a brief boost yesterday coming in...

The Euro started this week in a much better position than it finished last week. Sentiment was lifted overnight by better than expected data from China along with the new global banking rules, Basel III ,which did not harbour any nasty surprises.

The euro is heading for its biggest weekly decline in a month versus the dollar on speculation sovereign-debt risk will hinder prospects for the euro-zone’s economic recovery. The greenback traded near its strongest level this month against the European currency before reports next week which may ease concern the U.S.