The mixture of news of the US inflation data, UK's Bank of England quarterly inflation report and eurozone Q1 GDP left the major currencies trapped in relatively tight ranges as traders tried to determine whether or not the outlook for monetary policy in any of the G3 would change. If anything, it could be argued that the dollar did benefit as growth figures continued to surprise to the upside of expectations.

Sterling (GBP)

Last week was tough for the pound as record PPI data dampened hopes for a June rate cut and help lift the sterling until growth figures later in the week erased earlier gains. A dismal Bank of England inflation report took cable to three-month lows; however this report did not alter the monetary policy outlook.

US Dollar (USD)

Retail sales figures for the month of April came in at 0.5 per cent better than market forecast making many traders believe that consumer demand in the US is not as bad as expected. These sales figures coupled nicely with a benign inflation released. Core CPI came in at a soft 0.1 per cent and for some suggested that slower growth is helping to pull down prices.

Euro (EUR)

The release of French and German GDP data took away the excitement traders might have seen with a better than expected result from the eurozone. Q1 GDP came in at 0.3 per cent above expectations and Germany reported the strongest quarterly increase in growth in 12 years.

Japanese Yen (JPY)

Despite large US coupon payments and redemptions, the yen traded lower for most of last week.