Daily Currency Report
Market overview
US data released is set to dominate markets. The absence of any UK data leaves sterling at the mercy of the trend in carry trades. In other news NOK rose as the central bank increased rates by 0.25 per cent to four per cent with the Swiss franc also gaining ground with a 0.25 per cent hike taking the rate to 2.25 per cent.
GBP
The sterling stabilised against the euro after reaching an eight-month low as investors reduced their exposure to carry trades investing in high yielding currencies like the pound. The Bank of England's inflation target is at two per cent. However, inflation has been above that since last May so an interest rate hike in April's policy meeting is widely expected.
USD
An unexpected decline in leading US manufacturing surveys and poor weekly jobless claims figures helped to keep the dollar under pressure versus the other major currencies.
EUR
Euro data was limited with only the Swiss National Bank rate decision and the release of consumer price data dictation market flow. In February, European consumer inflation rose in line with forecasts.
JPY
The Japanese Ministry of Economy, Trade and Industry helped the yen as the tertiary index, which measures spending in the services sector, rose 1.6 per cent to 110.7 in January from December, the first increase in three months.