(14/01/2008 14:30GMT) Interest rate differentials are again a major driver in the currencies market and for that let the best win! By saying that without a doubt the crowned winner will be the last man standing as they say it and that is the ECB's hawkish policy compared to its counterparts.

The American economy has nothing in store for us today, yet this week it has a lot of jewels in its box and tomorrow the battered economy is to start the fundament flow in hopes that something will come along just to save face; nevertheless what are the odds and even though the Feds were loud and clear this time and all measures will be utilized to save the US from undergoing recession.

The UK started the day today with rising prices at factory gates and surging reflection from factories into the economy to a 16-year high at an annual rate of 5.0%; nevertheless that did not change the outlook much rather than justify the hold on rates last week and the sentiment is still to a cut in February, as they now see it the BoE has no other option but to bear rising inflationary threats. The pound still lacks strong upside momentum as it left the highest set today at 1.9647 in the early Asian session while the lowest was at 1.9559.

The Euro nation had some other side of the story today as they revealed November's data which to some is overdue and for that was discarded as industrial production slowed in the Euro area yet on a better pace than that expected by median estimates. Nevertheless the euro remains the strongest facing the dollar as with the alteration in Central Bankers' rhetoric and the monetary policy they both project the 15 nation euro will soon give rate higher than its US counterpart and that is the furnace actually that is sending the euro to achieve its upside targets. The euro maintained its Asian lows at 1.4784 reaching from there a high of 1.4914 opening the way to the $1.50 this week.

Investors continued to reduce their carry trades, which gave the Yen huge momentum to incline against majors especially against the Dollar, as the USD/JPY pair declined to a seven-week low at 107.36 after recording a high of 108.96 earlier in the Asian session. The Yen inclined against the Pound as well to its highest since July 2006 as the GBP/JPY recorded its lowest at 210.71.