Daily Currency Report
Overview
The sterling fell to a one-month low versus the euro as UK rate hike expectations were knocked by the previous day's soft inflation data. Elsewhere, the euro advanced, gaining strength from data showing growth in the eurozone and an upbeat survey of German business conditions.
GBP
The sterling was the main loser on the currency markets after data showed that Britain's inflation rate slowed much more than expected in January.
USD
The larger US trade deficit has helped to contribute to the US dollar's weakness overnight, as the trade deficit broke back above the $60 billion mark to rise to $61.2 billion in the month of December.
EUR
Strong GDP numbers has pushed the euro back towards the upper part of its month-long range against the US dollar as fourth quarter growth accelerated by 0.9 per cent on a quarterly basis and 3.3 per cent on an annualised basis.
JPY
The yen continued to strengthen against all of the major currencies overnight as Japan's current account surplus fell unexpectedly in December from a year