The US dollar weakened after the U.S. consumer confidence fell in August to its lowest level in four months. The dollar is on the defensive this morning, falling lower against currencies viewed as high risk such as sterling and the Australian dollar, partly boosted by robust gains in world stocks and rosy economic fundamentals for these pro-risk units said to be sensitive to higher growth.
 
The Japanese yen gained as falling U.S. confidence increased demand for currency safety. Gains will be limited as the currency continues to weigh down by jobless and deflation data ahead of Japan's general election on Sunday.
Additionally, the unemployment rate remains at record levels and household spending fell sharply.
   
The euro is climbing on the back of the return to risk-appetite to the market.  Also helping boost the euro is Eurozone economic confidence which rose to 80.6 in August, beating forecasts of 78.0.

The British pound drew support at the end of a terrible month from data that showed the UK economy contracted at a slightly slower pace than previously thought. The pound was up against the dollar at after revised UK gross domestic product figures showed a slightly slower pace of contraction in the second quarter. Although much of the recent UK data has beat forecasts, sterling was on track to post its steepest monthly fall this year against the dollar in August.
Sterling moves were limited on Friday, as traders were hesitant to take on big positions in the currency before a Bank Holiday weekend in Britain. UK markets will be closed on Monday.
   
The Canadian dollar rose from recent one week lows versus the U.S. dollar on Friday, an extension of the previous session's factors where firm oil prices and equity markets were supportive.

The Australian dollar breached a two-week high on growing expectations the Reserve Bank of Australia will raise interest rates before the end of the year. The New Zealand dollar found support on Friday from firmer stock markets and improved investor sentiment about a global recovery, and may break through a key resistance level in coming days after several attempts to break 11-month highs.

EUR/USD1.4388
USD/JPY

93.43

GBP/USD1.6380
USD/CAD1.0794
USD/MXN13.1685
USD/CHF1.0541
AUD/USD0.8469
NZD/USD0.6893
USD/DKK5.1938
USD/SEK7.0788
USD/NOK6.0108
USD/TWD32.880
USD/CNY6.8302

10-Year Treasury Note Yield: 3.442%
Dow Jones Industrial Average:  9,539.97 -40.66 This market summary is prepared by Union Bank's Global FX Department for the general information of its customers. It is based on the most accurate information currently available, but should not be considered investment advice or a guarantee of future exchange rates or trends.