After the US pumped new facts for us to ponder on and provided markets with the skimmed fruit; inflation is rising and growth is staling so basically that provides the US with a probable stagflation scenario, odd are on the next rate cut which still markets doubt the extent of it yet rest ashore one factor remains intact and that is easing will prevail the option for the Feds.

The uncertainty of rates outlook made majors retain tight trading ranges; while the winner for today was certainly the British pound, that after a while being weak an unappealing for investors, it got its groove back! After impressive retail sales beating median estimates in January with a gain of 0.8% the strongest pace since February of last year the pound managed to acquire positive momentum; with the proper volume the pound managed to withhold from reaching the lows near 1.94s the pound soared to attempt the uppers strong resistance at round 1.9570s setting the high at 1.9584 yet the pound failed to continue the upside progress to fall back to trade now around 1.9540s.

The euro was left weaker today despite yesterday's reversal and minimizing to losses, yet the much weaker current account once more agitate fears to the extent of slowing in growth for the EU; the euro was trading to the upside to set the high at 1.4758 where it resembles strong resistance to the pair combined with the bad fundamentals the euro reclaimed the downside trade against the dollar setting the low for the day at 1.4702 yet remaining within the level and not breaching down to 1.46s trading now near 1.4710s.

The euro also lost ground against the pound as now the rates outlook is again mixed as a March cut on the pound is dismissed, while growing potential for one on the euro might be, though unlikely yet the timing is known for the pound now for the cut and the euro remains vague for that the EUR/GBP managed the downside reversal from 0.7580s to reach as low as 0.7520s which offers strong support for the euro against the pound.

Japan and their battered currency remain fragile for all financial disturbance winds, and since the momentum is weak and the supporting risk appetite is unclear the dollar managed to keep the yen trading within the 108s despite attempts for the pair to break through to the downside, trading remained confined for the pair with more sideways tendency with seen advantage for the dollar against the yen while the pair now trades at is day high near 108.30s. The yen is still weakening as well against the euro slightly and the pound as well, as the latter inclined from 109.60s and 109.80s to reach the highest in the European session at 211.95.