The British pound fell against majors after downbeat data showing that UK's economy contracted 0.5% in the last quarter of 2010 compared with the prior 0.7% expansion and median estimates of 0.5% growth.

The abysmal report added to concerns after the tremendous rise in inflation to 3.7% in December, making policy makers in trouble as they have to revive growth and tame inflation at the same time.

Other data from the UK showed that public sector net borrowing deficit narrowed in December to 15.3 billion pounds from the revised 19.7 billion pounds deficit, whereas public finances deficit widened to 25.5 billion pounds from the revised 17.4 billion pounds shortfall.

Meanwhile, the royal pair is moving south as a daily closing below 1.60 psychological level yesterday and the breach of support at 1.5875 pushed the pair down to a low of 1.5765.

So far, the pair is trading at 1.5776 while it recorded a high of 1.6016 earlier today, whereas the trading range for today is among the key support at 1.5845 and the key resistance at 1.6250.

On the other hand, the dollar rebounded against a basket of major currencies, as depicted by the dollar index which rose to a high of 78.36 from the day's opening at 78.03, ahead of US consumer confidence report which is expected to show progress in January.

Concerning the euro-dollar pair, it is showing decline on the daily charts to pare some of the previous two weeks advance in the absence of data from the euro area.

Earlier today, German consumer confidence for February surged to 5.7 from the revised 5.5.

The trading range for today is among the key support at 1.3425 and the key resistance at 1.3900.

With regard to the dollar-yen pair, it slipped to a low of 82.27 to continue decline for the third consecutive session. The pair is currently trading at 82.39 while the day's high was recorded at 82.63.

The trading range for today is among the key support at 80.35 and the key resistance at 84.25.