Daily currency report

In a lacklustre day's trading, the major currencies remained within recent ranges as the economic data published failed to shed any new light on the economic health of the world's largest economies.

GBP

The sterling lost ground in early trading as a survey from the housing market research company, Hometrack, said that house price inflation fell by 0.2 per cent in January to a 22-month-low. The data immediately put the pound on the back foot, as investors began to assess the case for more growth-boosting interest rate cuts.

USD

The greenback was left unmoved by fresh housing data as the figures, while bad by any reasonable measure, were still better than market expectations. Sales of existing homes dropped by 0.4 per cent in January to hit a nine-year-low, and average house prices also fell by 4.6 per cent. Adding to the sense of gloom was a warning from the former chairman of the Federal Reserve, Alan Greenspan, who said that a quick recovery in the US was unlikely and, with the price of oil still rising, and housing market uncertainty set to continue, the economy would most probably get worse before it gets better.

EUR

Trading in the single currency was muted as there was little in terms of economic data released with the potential to inspire traders.

JPY

The yen is under pressure as an overnight rise in equity markets appears to have sparked a renewed appetite for risk, with traders cautiously returning to carry trades.