The risk buying continues into the mid-week, and much of the resurgence in risk appetite seems to be more driven by technical demand rather than any specific fundamental developments. In fact, Tuesday's much weaker than expected German ZEW and disappointing US homebuilders sentiment, have surprisingly failed to weigh on the recovery rally. Instead, market participants seem to be more focused on the break back above the 200-Day SMA in the S&P, and have used this to help inspire the latest bounce.

Joel Kruger, Currency Strategist, DailyFX