Pound Takes a Hit, Aussie Lifts


Bank of England Governor Mervyn King said inflation will stay above target for two years but tighter policy is not the answer, and the pound fell. [CNBC]

The yen rose against the dollar, but steadied against the euro, after a G7 statement aimed at calming currency tensions confused markets. [CNBC]

Euro zone industrial production slumped in December, but the monthly numbers suggested the worst could be over, and the euro rose. [WSJ]

Australian consumer confidence data jumped, lifting the Australian dollar. [actionforex.com]

The New Zealand dollar dipped against the Aussie after the strong Australian consumer confidence report. [WSJ]

Is the G7 wrangling obscuring a bigger potential currency war? [FT]

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