The US Dollar was perky most of the day but the main gainer yet again was the Japanese Yen which traded at its strongest levels yet again against Sterling and the Euro.
Much of the news released over the weekend has revolved the state of the UK economy with the banking sector once again coming under scrutiny but with Barclays announcing that the 8 billion of right offs last year that is well within their parameters and no extra funding will be requested.
Most of the British banks have now declared their exposure to the credit crunch it is now the turn of the European banks to make their announcements. ING and BNP Paris Baus have already posted their losses this morning and there are sure to be more follow this week.
There is little data today and only the US existing home sales and leading indicators being numbers of any note. The G7 are due to meet next week and there are many issues that will need to be discussed and some concerted intervention on the currency markets after their meeting is something that cannot be ruled out.
Sterling's weakness against the Yen could be highlighted at the G7 meeting.