Market overview
Gains in the dollar have been short lived as the focus remains on the expected pause in the Fed's monetary tightening policy. Data to be released on the US TICS capital inflow data should be enough to cover the US trade deficit, but is expected to fall significantly from last month's figure, pushing the GBP/USD figure.

GBP
The pound suffered from poor UK CPI data, matching economists' forecasts, as this gave rise to speculation that the BOE may cut rates later this year. UK unemployment data will be watched closely as markets continue to speculate on the future of UK interest rates.

USD
The increases against the euro and the yen gave additional momentum to the speculation that the world's largest economy is growing fast enough for the Federal Reserve to raise interest rates by March.

EUR
European equities suffered a sharp correction, led by the financial sectors, as traders became wary of pushing too high against a backdrop of geopolitical tensions and high oil prices.

JPY
The Japanese currency continues to be dragged by the dollar, this time with the help of a trading halt in the Tokyo Stock Exchange.