The dollar cut advances against its peers today heading back towards 2 week lows as the market focused on the European Central Bank’s policy meeting tomorrow amid lingering global growth uncertainty.  There are no significant US economic data releases for the remainder of this week and with the Fed calendar now light leading up to the FOMC’s meeting next week the dollar’s direction will probably be determined by variations in risk environment.  US dollar index was virtually unchanged trading at 97.14 off its session high of 97.58 reached earlier in the day. 
 
The euro weakened against the dollar with the pair down 0.05% trading at 1.1009 off its session high of 1.1034 after having come off its session low of 1.0945 reached earlier in the day.  The euro was pressured to the downside as the market broadly anticipates an additional rate cut further below zero by the European Central Bank when it completes its monetary policy review tomorrow.  An increase to its trillion euro asset purchase program to fight deflationary risks within the euro zone is also predicted. 
 
The pound held its ground against the dollar with the pair trading steadily at 1.4215 off its session high of 1.4240 after having come off its session low of 1.4176 reached earlier in the day.  The UK Office for National Statistics released data which revealed that UK industrial production climbed 0.3% in January following a decline of 1.1% in December while experts forecast an increase of 0.5%.  Manufacturing output rose 0.7% following a decrease of 0.3% in December marking its first uptick in 4 months while analysts expected an increase of 0.2%.
 
The yen weakened against the dollar with the pair up 0.4% trading at session highs of 113.36 after having come off its session low of 112.22 reached earlier in the day.  The yen maintained some support from safe haven demand following poor trade data released out of China which renewed worry over lagging global economic growth.  The yen had strengthened earlier in the session following news that the Bank of Japan may not lower interest rates at its upcoming policy meeting next week.  The BOJ surprised the market back in January by adopting below zero interest rates in order to devalue the yen. 
 
The Australian, New Zealand and Canadian dollars strengthened against the greenback as commodity associated currencies were supported by extended gains in oil prices following data which revealed that US stockpiles climbed less than expected last week.  The Aussie advanced 1% against the dollar with the pair trading at 0.7510 off its session high of 0.7528 after having come off its session low of 0.7412 reached earlier in the day.  The kiwi dollar rose 0.7% against the greenback with the pair trading at 0.6783 off its session high of 0.6809 after having come off its session low of 0.6715 reached earlier in the day.  The loonie gained around 1% against the greenback with the pair trading at 1.3251 off its session low of 1.3227 after having come off its session high of 1.3445 reached earlier in the day.  The loonie strengthened on the back of an announcement from the Bank of Canada to keep its key interest rate unchanged at 0.5%. 
 
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