US Dollar falls overnight

The  dollar fell overnight against most major currencies as the US Federal Reserve reported generally weak business conditions, stagnant economic growth and rising energy and food prices.

Equity markets were also lower as the price oil topped US$136 per barrel sparking another bout of inflationary concerns and further writew downs of some of the banks came in as well.
The Euro rose to an overnight high of 1.5588 against the  dollar. Underpinning the rising Euro were comments by European Central Banks re-iterating that it may raise rates as early as its next meeting in an effort to combat inflation.

The pound, despite some lacklustre economic data had been trading just above 1.9600 although has been pushed back down intot he 1.9400 region. Unemployment rose by 9,000 in May, its fourth monthly rise in a row and the April trade balance also widened when a shrinking deficit had been forecast. The pound is holding firm against the euro put is somewhat underpressure.