Sterling revisited a one-month high against the dollar today, which remains subdued despite making gains against the yen. The euro also traded higher against the greenback after hitting a high last reached back in December.

Pound Sterling – UK Markets

The pound matched a one month high against the dollar this morning as it continued to benefit from BoE comments made yesterday. A run of firm figures including retail sales and trade data has also supported the pound this week, which traded at EUR1.120 as of 0929 GMT when trading volumes hit their highest in a month, according to news sources. However, sterling may struggle to sustain these gains, given that it may meet near-term resistance. A slew of data next week, including employment and public borrowing, will give a clearer picture of exactly where the pound is headed and whether we will really see an end to economic stimulus.

US Dollar – US Markets

The US dollar remained lower against other currencies this morning at GBP0.614 and EUR0.687 (0934 GMT) after a Federal Reserve report showed a broadening US economic recovery. US currency rose against the Yen to end three days of losses after Federal Reserve Bank official said that policy makers must raise rates before employment falls to an acceptable level.

Euro – European Markets

The euro traded higher at 0921 GMT this morning at USD1.454 after earlier hitting 1.458, its highest level against the dollar since Dec 16th, and 0.892 versus the pound. Analysts said that demand from Asian sovereign entities helped support the euro. European currency rebounded on Wednesday after steep losses in the previous session as investors decided that China's unexpected monetary tightening would not derail growth in the country.

Other Currencies – Highlights

The Japanese yen weakened against higher-yielding currencies after an Australian report showed employment rose more than economists initially forecast, boosting demand for riskier assets. The yen traded at 149.20 against the pound and 91.61 versus the dollar as of 0936 GMT.