Risky currencies had a strong rally overnight, as stock markets rallied ahead of some important earnings reports and economic data today. US financials led the US equity markets higher (6.5%), ahead of the first bank earnings release. The positive sentiment has carried over to Asian and European trading. The EURUSD remained elevated, trading in a 1.3960 - 1.4010 range, while the USDJPY traded with a bullish bias to 93.25 from 92.80. While some currencies have seen decent price action, overall most are trapped in range bound trading. This lack of direction accompanied by low volumes stinks of listless summer price action. With the USD weaker, oil and gold were able to shrug of its recent downtrend. Crude wti fell to a low of $58.30bbl before rallying above $60.00bbl, while gold drove above $921oz (oil and gold correlations with the USD have increased over the past months). In New Zealand, RBNZÕs Bollard spoke this morning, stating that the country needs a weaker exchange rate: What is needed is for the New Zealand dollar to be persistently weak over the coming years, to encourage the needed business investment to be export-oriented and supportive of improvement in New Zealand 's external liability position. With German ZEW, Eurozone industrial production and US retails, as well as the corporate earning season kickoff with Goldman Sachs, this will prove to be an interesting trading day.

G10 Advancers and Decliners vs USD

Global Indexes Current Level % Change
Nikkei 225 Index9,261.81+ 2.33
Hang Seng Index17,896.39+ 3.71
Shanghai Index3,145.16+ 2.09
FTSE 100 Index4,229.00+ 0.63
DAX Index4,766.85+ 0.94
SMI Index5,372.41+ 1.07
DJIA futures8,280.00+ 0.24

World Markets Current Level % Change
Gold922.45+ 0.23
Silver12.92+ 0.58
VIX26.31- 9.33
Crude wti60.54+ 1.42
USD Index80.00- 0.11

Todays Calender Estimates Previous Country / GMT
German ZEW economic expectations index Jul47.844.8EUR / 09.00
Industrial production, % m/m (y/y wda) May1.0-1.5,-20.7EUR / 09.00
Retail sales, % m/m (y/y) Jun0.5 (-9.3)0.5 (-9.5)USD / 12.30
Retail sales ex autos, % m/m (y/y) Jun0.5 (-7.6)0.5 (-7.2)USD / 12.30
PPI, % m/m (y/y) Jun0.8 (-5.2)0.2 (-5.0)USD / 12.30
Core PPI, % m/m (y/y) Jun0.1 (2.9)-0.1 (3.0)USD / 12.30
Business inventories, % m/m (y/y) May-1.0,-7.5-1.1,-6.6USD / 14.00