Pound down as risk appetite improves

The pound lost around half a cent to the Australian dollar yesterday to finish the day at 2.0384.

• The pound lost ground to the Australian dollar yesterday morning, as higher yielding currencies such as the aussie got a boost from strong corporate earnings figures from JPMorgan.
  
• The Australian dollar continued to post gains against sterling yesterday evening, as Wall Street closed 1.11% up following the investment banking giant’s results.
  
• However, the Australian dollar lost ground overnight when data revealed a record fall in Australian export prices for the second quarter. The 20.6% slump raised concerns that trade could be a bigger problem for the economy than expected.
  
• Bomb blasts which ripped through two hotels in Jakarta overnight, killing at least 9 people and injuring 42, also undermined the Australian dollar, as the news prompted some investors to pare riskier trades.
  
• Markets now await corporate earnings figures from Citigroup and Bank of America, both due later today.