There were certainly no shocks as both the Bank of England and the European Central Bank decided to maintain interest rates at their current record low of 0.5 and 1 per cent respectively. However, much of the focus lingered on the inadequacies of Spain, Portugal and Greece in the Euro Zone and their associated fiscal problems. This kept pressure on the single currency limiting its movements. Sterling also found itself pegged despite a Halifax survey showing house prices rose to 0.6 per cent in the last month.

Sterling

The Bank of England kept interest rates at a record low of 0.5 per cent for the 11th consecutive month. Although much of the focus was drawn to the bank's decision to put on hold their unprecedented £200bn pound asset-buying programme. As a result the pound temporarily clawed back some of the losses incurred against both the dollar and the euro, earlier in the week.

US Dollar

Anxieties over rising unemployment in the build up to the non-farm payrolls took much of the gloss off strong US data earlier in the week which included US factory orders rising 1 per cent in December and marked a rise for the fourth consecutive month. Furthermore, US worker productivity rose 6.2 per cent in the fourth quarter, above analyst's expectations for a 6 per cent rise.

Euro

The euro suffered, plunging to an 8 month low against the dollar, a one year low against the yen and erased previous gains made against the pound. The European Central Bank kept interest rates on hold at a record low of 1 per cent but dwelled upon the shortcomings in Greece, Portugal and Spain and their fiscal problems which have affected the debt-laden Euro Zone.

Japanese Yen

The yen surged against the euro and the dollar as it was able to capitalise amid a wave of risk aversion, rising to a 1 year high against the single currency and a 7 week high against the dollar.