There were Major concerns about the market and how currencies will react according to the housing data brought by the US economy yesterday. As we all know by now the US credit crisis was caused mainly by the housing slump. Yesterday's housing data affected major currencies as they gained strength against the US Dollar. Today the Euro is settling around 1.4253 levels whereas the GBP is trading around 2.0424 levels while the Yen reached to 116.54 levels.

Since today's morning session, the Euro started to incline recording a high of 1.4253 and a low of 1.4195. It appears that the Euro is gaining strength however the truth is the dollar is weakening, that places the pieces of the puzzle especially after yesterday's housing data which indicated further downturn. Today market await for the trade balance coming from the Euro Zone in which analysts forecasted a flat reading compared to the prior reading coming at 4.6 billion euros.

The GBP started to incline at the beginning of today's session fluctuating within narrow ranges. Though it's not very clear now, the GBP seems to be declining slightly recording till the hour of this report a high of 2.0429 and a low of 2.0381. Today, the economical calendar shows a couple of data coming out from the UK's economy. Starting with, the retail sales for the month of September in which analysts expect a rise of 0.1% lower than the previous rise of 0.6%. As for the yearly reading, analysts expect a rise of 5.5% higher than the prior reading of 4.9%. The UK is also releasing the M4 Money Supply for the month of September where analysts expect a rise of 0.9% lower than the previous rise of 1.2%.

Finally, the Yen is inclining slightly, yet it's fluctuating within narrow ranges. The dollar's weakness is pushing the USD/JPY pair to the downside recording a high of 116.63 and a low of 116.35.