The appetite for risk has improved dramatically over the past few sessions of trade, with a number of positive developments in the global macro economy helping to bolster the improved sentiment. The welcome progression of solid Chinese export data, stronger Australian unemployment, rate hikes from New Zealand and Brazil, successful debt sales in Spain, Italy and Ireland, and a German court rejection on attempts to block EU/IMF aid, are all seen as the primary drivers of the recent encouraging price action. It will now be interesting to see if the markets can build on this momentum in the final trading day of the week.

Joel Kruger, Currency Strategist Daily FX