Evening Report-Feb 05.

Rupee ends at 48.76 levels against the US dollaron mild selling of dollars from banks. Rupee moved in a narrow band as the spot rate was steady as Dollar demand matched the supply .U.S dollar remained sidelined ahead of the key U.S. non-farm payrolls data on Friday, which are expected to show ongoing deterioration in the labour market of the world's largest economy. Market participants will be eyeing weekly jobless claims figures which is projected to show the economy lost an additional 540,000 jobs.Euro was seen steady ahead of ECB rate verdict .German factory orders dropped for the fourth month in December as the index fell 6.9% followed by a revised reading of 5.3% decline in previous month, the data crossed the wires much weaker than the 2.5% drop forecast held by market participants. The breakdown of the report showed that domestic orders fell 4.3% from November, while foreign orders plunged 9.4%.European Central Bank is likey to ease policy further over the near-term as ECB president Trichet reiterates that the Central Bank has not excluded the possibility that the interest rate could go below 2% in March.British Pound rallied after HBoS January house prices. Cable pushed back up to 1.4480 after basing around 1.4370. House prices are still expected to deteriorate, but there may be signs of bargain hunting at current levels. sterling should maintain a supportive tone, but speculative activity should be tempered ahead of today's BoE rate decision, which is expected to result in a rate cut of 50bp to 1%.Japanese Yen Weighed on Japan's Tax Plans.