The dollar could advance with industry reports showing US manufacturing expanded in January faster than the average for last year. Quicker growth indicates that the Federal Reserve has not yet finished raising interest rates. The dollar had its biggest monthly slide versus euro since November 2004. We could see geopolitical strains on the dollar if the Iran case is taken to the UN Security Council

GBP

The UK pound put in another impressive performance. The market had previously expected the Bank of England to deliver another rate cut in Q1. M4 money supply confirmed that inflation pressures are still prevalent.

USD

The dollar was sold off significantly ahead of the Federal Reserve's interest rate decision, although it later recovered nearly all of its losses. As expected, the Fed delivered its 13th consecutive 25bp interest rate hike.

EUR

The market was so focused on US data that the weaker economic data from Germany was largely ignored. German retail sales fell by a surprising 1.6 per cent.

JPY

The yen has finally managed to stage a rally after sliding for five consecutive trading sessions against the dollar.

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