The Dollar pulled back during yesterday's trading session against its major counterparts while investors put aside fears about Europe Economy. Growing appetite for risk came in respond to speeches by Bernanke, U.S. central bank chairman, Trichet, Europe Central Bank Chairman and IMF, international Monetary Fund, chairman. All stated they would act to support their economies to ensure growth including keeping interest rates at record low levels.
The EUR/USD pair rose by more than 100pips since yesterday's trade session, the pair crossed a significant support level and is expected to trade above 1.2075 at day start. The USD traded lower against the CAD, the pair is currently at 1.0330. The cad was supported by a sharp rise in crude oil price. The GBP/USD pair rose by 125pips, and although the pair is now lower than yesterday's high it is trading above $1.4700 during Asia trading hours.
Looking ahead, today traders are advised to follow reports published at 12:30 GMT. U.S. will release retails sales data, which is forecasted to be lower than previous, therefore signaling economic recovery retreat. However, if they are at least above forecast it should boost the Euro further up.