The rebound in stocks in both the Asian and the European markets promoted investors to borrow the Yen and invest it in higher yielding assets, which provided majors with the strength to incline.

While today is rather calm and was highlighted so far by narrow ranges in FOREX markets; as no major market movers are due today, while the rest of the week is going to be highlighted by rate decisions from both the BOE and the ECB, analysts expect the BOE will lower their benchmark interest rates by a quarter basis points, while expectations are to see steady rate in the Euro Zone.

The Euro recorded its lowest today at 1.4792 in the early trading hours and gained afterwards to set a high at 1.4848, while an inline with expectations Producers Price Index did not have a major effect on the Euro.

The Pound also gained as carry traders dominated the markets today, the Pound recorded its lowest today at 1.9626 and inclined to set a high of 1.9776, meanwhile the Pound inclined against the Yen as well, as the pair reached the 211 levels once again.

As investors sold the Yen to finance investments in higher yielding assets; the Yen dropped slightly against other major currencies, the USD/JPY pair recorded a low of 106.50 and inclined to set a high of 106.96 in thin trading so far on this pair in particular, while more noticeable movements were seen on the EUR/JPY which inclined to the 158 levels, and the GBP/JPY pair which reached the 211s level.

The only news coming out from the United States is the Factory Orders for the month of December, which is expected to drop slightly to 2.4% from the previous reading of 2.5% in November.