The Chilean peso fell yesterday as Chile’s economic growth trailed forecasts, reinforcing the view that the central bank will cut interest rates soon.

The US dollar recovered a bit today after yesterday’s losses, but still remained soft amid speculations that the Federal Reserve may reduce its asset purchase program.

Euro is gaining ground today against the US dollar, firming ahead of the upcoming EU meeting. Even though there are expectations that Cyprus will need more support, and the situation with the eurozone is still a long way from resolved, the euro is finding support today.

Hopes for the UK economy are driving the UK pound higher, especially against the US dollar, today. Rising home prices are providing optimism that the UK economy is improving, and that is reflected in sterling gains today.

The Taiwan dollar gained today on signs that nation’s assets were attractive to overseas investors, leading to inflows of foreign funds, and as politicians were planning to review taxes on capital gains.

The Japanese yen gained today as politicians were worried that the excessive drop of the currency may be not that beneficial for the country and may actually hurt the economy.

This week was relatively quiet in terms of news, though some important macroeconomic reports were released. Meanwhile, the US dollar was rising against other most-traded currencies and the Dollar Index surged to the highest level in almost three years.

The Canadian dollar slumped today, touching the lowest level since March against its US peer, as inflation slowed last month, decreasing probability of an interest rate hike from the Bank of Canada.

The Chilean peso weakened today against the US dollar even though the central bank refrained from cutting interest rates yesterday. The currency advanced versus the euro.

Disagreement over the vision of the eurozone is starting to take its toll on the euro. Lack of unified leadership at a time of economic difficult and continued sovereign debt crisis is contributing to the euro hitting a six week low in earlier trading.