The U.S. dollar was unable to maintain momentum and lost ground across the board, trading from 1.4515 to 1.4652 against the euro.

  • Renewed risk appetite, amid a weaker USD, drove the equity markets higher, despite starting the session on the back foot.  FOMC member Lacker spoke yesterday and said the US economic recovery seems to be on track and that he sees substantially less risk of big bank failures.
  • According to latest reports from the European Commission the Eurozone is emerging from recession.  The commission forecast growth of 0.2% for the July to September quarter, with Germany and France continuing to grow and Italy exiting recession.  The U.K. which is not part of the Eurozone is also forecasted to grow by 0.2% during the third quarter, marking the end of the recession.
  • President Obama, speaking at the Federal Hall in Wall Street, warned financial leaders not to return to old reckless practices and said there is an urgent need for tighter financial regulations to forestall another crisis.
  • The U.S. President said job losses are bottoming out and the U.S. economy looks to be growing again.  On trade, Obama said that his imposition of 35% tariffs on $1.8 billion in imported tires from China would not result a trade war.

Currency to watch out for: EURUSD & GBPJPY

  • The EURUSD pivot point is at 1.4560 with a preference to enter into long positions at 1.4570
  • The GBPJPY pivot point is at 150.55 with a preference to enter into long positions at 150.70

Today's calendar and market movers:

  • UK CPI year on year expected to drop to 1.4%
  • German ZEW Economic Sentiment expected to rise to 60
  • US Core Retail Sales month on month expected to rise to 0.4%
  • New York Manufacturing Index expected to rise to 14


  • A rally, late in the US session, saw the major indices move higher and at the closing bell the Dow closed up 0.22%, the S&P closed up 0.63% and the NASDAQ closed up 0.49%.
  • As of 06:20 GMT the Nikkei is trading at 0.15%