Forex Market Update

By Jane Foley
23 July 2010 @ 06:59 am EDT

Strong economic data from both Germany and the UK injected some life into the risk trade during the European morning. The data offset many of the earlier jitters surrounding this afternoon's release of the EU's bank stress tests. While a nervous banking sector continues to weigh on the FTSE 100, generally stocks indices have traded moderately higher this morning. The weaker tone of the yen across the board, and the better tone of the EUR the AUD, NZD and the CAD vs the USD this morning were also suggestive of increased risk appetite. However, these currencies have already given back some of their morning gains.

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