Daily currency Report
Market overview
The dollar continues to come under selling pressure as data showed that net inflows into the US were not enough to cover the current account deficit. The pound was also hit by the largest increase in people claiming jobless benefit since 1992.
GBP
The possibility of an interest rate cut in Britain was confirmed after a monthly rise in British unemployment.
USD
The dollar suffered again as data showed that, for the second month in a row, the net flows of capital into the US were not enough to cover the January deficit.
EUR
The euro gained ground on the sterling and dollar. The release of the €12 CPI data is expected and, the ECB has largely overlooked this in its pronouncements on inflation risk, recently revising its 2006 forecast to 2.5 per cent.
JPY
The Japanese yen was sold-off against all the other major currencies following comments from the Bank of Japan's governor.