Greenback recoups, traders eying data releases

The greenback recovered on early Tuesday morning in the Asian trade after suffering broad-based selling on late Monday night following the release of Japanese current account surplus figures, which soared 35% in December while the trade surplus surged 28%, further highlighting the persistent issues of the US current account and budget deficits.
The Japanese currency gained more than a whole yen before the dollar recovered the 105 levels. Markets would keenly look forward to Japan’s GDP data release due on Wednesday for further direction in the currency.
Euro found support from a few ECB officials who expressed concerns about potential inflationary pressures and the single European currency extended its rally above the 1.29 mark to the 1.2980s.
Currency traders seem wary of fresh position taking ahead of key events like Greenspan’s Congressional testimony later today and Japan’s Oct-Dec GDP data release.
Another key data release would be the US capital flows figures, which would indicate how the world’s largest economy is funding its deficits.
Cable sky-rocketed above the 1.89 mark, leaping more than 2 cents on a strong manufacturing report from Britain which fuelled expectations of a rate hike by the BoE.