An uneventful night in FX as most majors consolidated their losses against the greenback, trading in tight ranges through Asian and early European trade.

Profit taking was the theme of the day, as EUR/USD dropped more than 100 points from its Asian session high tripping stops along the way.

The EUR/USD spent most of the night trading tightly around the 1.3800 figure as offsetting economic reports made it difficult for traders to establish a direction in the pair during Asian and early European sessions.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of July 23.

The week started exactly as the last week ended with the dollar being liquidated across the board.

UK GDP printed a better than forecast 0.8% vs. 0.7% expected and pulled the pound above the 2.0500 level once again.

Yesterday’s less than inspiring testimony of Fed Chairman Ben Bernanke continued to weigh heavily on the greenback in overnight trade, with euro benefiting the most from the anti-dollar flow.

The British pound broke through the critical 2.0500 figure, but found some difficulty holding that level in the wake of relatively tepid Bank of England minutes.

Yet another night of fresh 26-year highs for the pound as UK inflation gauges surprised to the upside with CPI core reading hitting 2.0%. With core CPI reaching its highest level in 10 years, the news will only serve to stiffen BoE’s already hawkish posture as UK monetary officials make every effort to contain persistent price pressures in the system.

The NZD/USD hit a post-float high breaking above the 7900 barrier after hotter inflation readings that printed at 1.0% vs. 0.8% on a quarter over quarter basis.