The euro was the biggest mover after comments from an ECB member started a euro sell-off against most of the majors. Elsewhere, in the US, the futures markets are still pricing in a 0.50 per cent cut on interest rates and a possibility of 0.75 per cent cut, while the yen made more gains after a report showed a narrowing of the country's debt which was likely to continue.

GBP

Although the pound ended the US trading session flat against the dollar, the currency pair recovered strongly against the euro, yen and Swiss franc. Jobless claims dropped more than expected in December while earnings including bonuses held steady.

USD

The market largely ignored mixed data of US Consumer Price Index and Industrial Production figures - instead forcing major price movements on later developments in euro interest rate expectations. Indeed, the highly-anticipated CPI report showed that US inflation levels fell exactly at consensus forecasts through the month of December and did little to shift Fed's Rate forecasts.

EUR

The euro lost ground after comments from an ECB Governing Council member which sparked aggressive short covering through New York currency trading. The dollar seemingly benefited from a panicked short-covering on over-extended forex positioning and rallied against other major currency counterparts.

JPY

The yen rose against the dollar and the euro after the Fed and ECB said economic growth is slowing, prompting speculation they will both lower interest rates. The yen extended this year's gain to four per cent versus the dollar while approached a four-month high against the euro.