The greenback was trading in a mixed way and in tight ranges in the recent few days unfazed of the new equities market gains which pushed Dow to a new high closing this week above 8900. The British pound could get back today most of its earlier loses versus the greenback trading above 1.65 currently while the Japanese yen came under accumulated pressure from the gains of the equities markets which trigger the investors risk appetite to sell the low yielding currencies for taking risk again joining the current market confidence. In this same time, the single currency which is waiting for the release of July germane IFO to go up to 86.5 from 85.9 in June tomorrow is still trading around 1.42 versus the greenback as there were no significant data to move it from here and it looks that the market has become pricing on these stocks gains and cautious from an inevitable profit taken wave can be triggered at any moment. The recent stocks rally has been triggered in the beginning of last week by Meredith Whitney's upgrading of Goldman sacks stocks to buy from neutral expecting it go up 30% which means about 186$ per share which put pressure on the greenback supporting the investors asking for the British pound and the single currencies for taking risk and joining this wave which continued this week too after last week strong containing and bullish closing which brought S&P future from 865 to 940 at its close and it is now trying for making a new year high breaking 960 trading right now at 955.
Earlier this week, Bernenke has refereed in his testimony in from of the congress to the current weakness of the labor market which can effect negatively on the consuming spending downplaying the inflation upside risks in the next 2 years and there is no change of the fed's easing policy before an improving of the labor market. There was no a mentioned change in the market after his testifying too as the market looks waiting for more important data in the next 2 weeks before moving the greenback to know more about the current pace of recovery, Since, the recent release of June US consumers confidence survey which has declined to 49.3 and it was expected to be 57 and the weak figure of US July consuming sentiment survey of University of Michigan preliminary reading which came down to 64.6 and it was expected to be 71 and we wait its final reading tomorrow to be 71 from 70.8 in June.