Today we see a different view of a market as unexpectedly the dollar consolidates its recent sharp gains against its major counterparts. The greenback is seen drawing some support as suggestions indicate that rising inflation could prevent the Feds from making further interest rate cuts.

The Euro and pound edged down against the US dollar as markets awaited interest rate decisions from the ECB and the BOE in which the ECB is widely expected to keep its benchmark interest rate on hold at 4% while analysts predicted that the BOE would lower rates to 5.25%. The EUR/USD pair is trading towards the downside however with thin ranges pushing the pair to record a low of 1.4598 after recording a high of 1.4652.

Sterling extended its losses amid weak manufacturing data, adding to the case is the expectation for a cut in rates from the Bank of England. It is clear that the pound has been under pressure as a series of negative data has increased pressure on the Bank of England to ease monetary policy to boost the economy. The pair in fact is affected negatively due to the weak pound pushing the pair to the downside to fetch a low of 1.9507 after recording a high of 1.9622.

The US dollar dropped against the Yen as worries over the health of the US economy continues pushing the pair to the downside to fetch a low of 106.26 after recording a high of 106.70.