USD - The dollar is lower against all 16 of its most actively traded peers this morning as rising stocks and commodities has encouraged a modest rebound in investor risk appetite. With fears of an imminent Greek Eurozone exit on the decline, and with signals from a G20 meeting that global policymakers will act to support struggling nations, demand for the USD's relative safety has waned. The draft communiqué from the recent summit includes a pledge that euro area member states at the G20 will take all necessary policy measures to safe guard the integrity and stability of the euro area, at least temporarily assuaging investor fears. Further encouraging the risk rally, building permits - a gauge of expected future construction - jumped 7.9% versus last month, reaching the highest levels since prior to the financial crisis. However, actual housing starts fell by more than expected, registering 708k versus 744k in the previous reading. The dollar has also come under pressure this morning as the Fed begins a two-day policy meeting at which investors are increasingly expecting policymakers will announce further easing measures. Increased liquidity would undermine the dollar as the yield gap against its higher-yielding counterparts will surely widen.

EUR - The common currency gained back much of yesterday's steep losses, but remains within its recent well-worn ranges. By all accounts, the formation of a ruling coalition in Greece is going rather smoothly, but the installment of an effective government won't be the end-all, do-all answer many are hoping for. Regardless of the makeup of the new Greek coalition, policymakers will inevitably have to negotiate more lenient bailout terms with their external creditors after weeks of political turmoil has put the nations fiscal consolidation plan behind schedule. Moreover, investors are beginning to wonder if further austerity and a worsening recession could prompt Greece to leave the currency bloc after all. Meanwhile, yields on Spanish debt remain at alarmingly high levels. Investors are increasingly concerned that should Spain require a financial bailout similar in style to those already extended to Greece, Ireland, and Portugal, calls for a departure from the Eurozone may intensify. With Spanish unemployment already at 25%, the austerity measures that would accompany a bailout would not be easily accepted let alone concerns on whether the EU's current mechanisms would have enough firepower available to provide support. Nevertheless, a Spanish debt auction held this morning was oversubscribed driving yields on short-term debt down slightly.

GBP - Sterling is mixed this morning, falling against the EUR while posting marginal gains against the USD. The general weakness comes as investors begin to price in further QE from the BoE after inflation unexpectedly fell to the lowest levels since 2009. However with expectations mounting that the ECB, Fed and other global central banks will also add liquidity, the depreciative effects on the pound will likely be limited.

JPY - The yen consolidated within its recent ranges this morning as rebounding financial markets sap demand for its relative safety. Moreover, Finance Minister Azumi reiterated his position on excessive foreign exchange moves at the recent G20 summit, but the draft communiqué only references a preference for flexibility and avoiding devaluations.

Commodity Currencies - The commodity linked currencies are broadly higher this morning as the risk-on rally provides support. Raw goods are higher with oil rebounding to $95/bbl, copper up to $343/lb, and consumables generally higher. The CAD gained to a four-week high against the USD as investors expect further stimulus measures out of the US - Canada's primary trading partner. Further liquidity will not only support demand for Canadian goods, but it will also increase the relative attractiveness of CAD-denominated assets with their increased yield advantage. The AUD forged higher against most of its major counterparts after the minutes from the RBA's last meeting