Trader's aversion to risk has continued to push safer currencies higher as global equity markets continue to trend lower. Both the Nikkei and Dow Jones Industrials ended lower yesterday and that has been influencing the currency markets. The financial markets show the concerns of a global recession. Traders have been unraveling riskier investments financed with loans from currencies with ultra low Interest Rates, predominately in the USD and the Yen. These two currencies may continue to see support in the short term as investors lose confidence in riskier assets.

The Dollar continued a 3-day rally against the EUR, finishing the day up at 1.3328. The Dollar also posted significant gains against the GBP, sending the pair down 2% to finish the day down 1.4774.

Trading today and tomorrow may be based on fundamental data coming from the United States. The U.S. trade balance report will be released today at 13:30 GMT and is expected to show a decline in the difference between U.S. exports and imports. Tomorrow the monthly retail sales report will be released. This report has proven increasingly difficult to accurately forecast. Traders will be looking for these reports for positive economic data to give direction for the struggling U.S. economy.