The key news on the geopolitical front was the apparent agreement between major powers to refer Iran to the UN Security Council. The previous string of stories seemed to depict a different scenario, with China in particular seeking to avoid a referral. This issue should fade into the background, though the response from Iran will be key.

GBP

The British pound managed to post small gains against the dollar and the euro, as British house prices have risen for the second consecutive month. With money supply growing at a time when oil prices are also rallying, upside inflation pressures will remain evident.

USD

The greenback crept up slightly higher against the majors ahead of a highly anticipated Fed monetary policy meeting. Despite Friday's dull US GDP figure, the dollar managed to dismiss any weakness to close nearly a cent higher against the euro.

EUR

The euro was unable to hold above the 1.21 level versus the dollar, slipping to a low near 1.2060. The euro sell-off enters its fourth consecutive day, the longest losing streak since November. The possibility that the Fed will make no additional change to the December modification will raise the possibility of a March rate hike.

JPY

The yen came under pressure from Japanese individual investors keen to pour more of their yen into investment trusts featuring higher yielding currencies such as the AUD, thus indicating that the weak JPY trend may not be over.