Forex Bazaar

Due to theUK’s CPI (Consumer Price Index) expected to be reported as an increase from 4.0to 4.2% on Tuesday, Sterling has started the week off  strong achieving a two week high against thegreenback to around $1.6344.  It also madegains against the Euro that fell 0.2% to 87.16 pence. 

Although itslipped against Sterling, the Euro also enjoyed gains against the USD due tothe latest US data on Existing Home Sales. The Euro rose to $1.4232 against the USD.  In fact, the USD is performing weakly againstmost major currencies including the Australian Dollar, with the AUD/USDrallying to 1.0050.

Asmentioned previously, the Yen continues to dominate market news due to therecent stabilisation exercise performed in cooperation with the G7.  Also, as the apparent nuclear risk starts tolessen within the country, the Japanese currency decreased to around 81.06versus the USD.