NZD closed nearly flat on the day, with weak comments about UK banks halting the pound's upward movement and risk aversion providing support.

• The markets have been cautious this week, not only as fears grow about the eurozone but also ahead of the US GDP figure due this afternoon.
  
  
• Investors have shunned risky assets, with the kiwi moving lower this morning, with markets waiting to see if the US economy hits its growth forecast.
  
  
• Currently the pound is up above 2.29, at a near two month high.

AUD - Sterling edged lower against the Australian dollar yesterday, ending a three day upward streak as the UK banking industry came under fire.

• The pound relinquished early gains after a credit agency said that UK banks can no longer be classed among the most low-risk in the world.
  
  
• Sterling was prevented from falling too low though with risk aversion remaining on concern over the strength of the global recovery.
  
  
• The Nikkei 225 fell 2.1% and the MSCI Asia Pacific Index of regional shares dropped 1.8%, sapping demand for the aussie.
  
  
• Indeed the pound is marginally higher this morning, with the price consolidating above 1.80 following some positive confidence data from the UK economy.

€/$ The euro maintained its downward spiral against the US dollar yesterday, losing a further half cent to close some way below 1.40

• The euro fell to the lowest level in more than six months against the dollar on concern Greece's fiscal problems will spread, damping demand for European assets.
  
  
• Greek Prime Minister George Papandreou has said the country does not need to borrow from European nations. However, investors are beginning to doubt the nation can reduce the biggest budget shortfall in the European Union without assistance from outside.
  
  
• In the US, data revealed the number of people claiming jobless benefit fell last week, though was still higher than the market expected, which saw the dollar par its gains.
  
  
• In trading this morning the pair is holding around the overnight closing price. Investors are awaiting a report, which may show the euro-zone's unemployment rate has reached an 11-year high.
  
  
• US GDP figures in the afternoon could also move the markets, with the economy expected to have risen at an annualized rate of 4.5% in the 4th quarter of 2009.

£/$ Following negative comments concerning stability of the UK banking sector, sterling fell from its day high to close lower against the US dollar.

• In early trading the pound rose steadily, continuing to garner support following comments that the rate of inflation is moving beyond the BoE's targets.
  
  
• Having risen to a one week high against the dollar in the early session, the pound slipped back sharply, losing 0.85% after a report from credit agency Standard & Poor's that highlighted the risks of UK banks.
  
  
• S&P later confirmed that the report was an expanded version of a report issued on Dec. 21 st, but it was enough to send jitters through UK markets, pushing the FTSE 100 closing down 1.4%.
  
  
• Trading this morning has seen the pound recoup some of its losses as investors remain cautious ahead of the advanced GDP numbers from the US economy, due for release at 13:00.

£/€ 5-month high of 1.1623 yesterday, the pound slipped back sharply in the afternoon to close only marginally higher on the day

• The pound was broadly firmer throughout most of the day on persistent positive sentiment towards the currency in the wake of hawkish comments from Bank of England policymaker Andrew Sentence.
  
  
• Sterling pared its gains though following negative comments from rating agency Standard & Poor on the UK banking system.
  
  
• The agency said Britain was no longer classified as being among the most stable and low-risk banking systems in the world, adding Britain's weak economy would continue to hinder the industry's credit profile.
  
  
• Sterling was sold heavily following the announcement, though remained firmer against the euro as concerns over the fiscal health of Greece and Portugal dented the single currency.
  
  
• In trading this morning the pound is gaining steadily with the markets watching carefully for the eurozone unemployment figure due at 10:00.