Trading saw the US dollar capitalise on recent gains and make further inroads against both the euro and the sterling. However, rather than any underlying dollar strength, it was more a question of weak data in the UK and eurozone that helped propel the greenback upwards.

Sterling (GBP)

The pound slipped below critical support levels against the US dollar as weak UK data fuelled speculation that the Bank of England may cut rates. Data released suggests that economic growth in the UK is being held back by not only waning consumer and business spending, but also foreign demand amidst a global slowdown, adding to speculation that the Bank of England will cut rates again in June if not this week.

US Dollar (USD)

In spite of moderately disappointing economic data, the US dollar posted gains pretty much across the board, as evidence continues to mount that the economic outlook in both Europe and the UK is deteriorating rapidly.

Euro (EUR)

The euro plunged over 100 points versus the greenback, as eurozone retail sales missed consensus forecasts and fell 0.4 per cent during the month of March. A 0.6 per cent drop in German Factory Orders certainly didn't help the euro's case either, and only added to speculation that the European Central Bank will have no choice but to focus more on deteriorating growth during their interest rate meeting. Until now, upside price pressures have been the main area of concern for the European Central Bank.

Japanese Yen (JPY)

The yen crosses were on the retreat as the carry-trade favourite garnered support from a market-wide swell in risk aversion and growing speculation that the Bank of Japan may have to lift lending rates in order to quell inflation pressures that have reached a decade high.