The US dollar rose has risen towards a 7 week high against the Yen and stayed away from an all time low against the Euro overnight as Citigroup's results (released last Friday) fuelled hopes that the worst of the bank losses stemming from the US housing sector are now 'on the table'.

Short term the US currency may pick up more support but it is too early to say the Trend has definitely changed with our model showing the Euro still in a buy Trend against the dollar. The ECB is holding rates steady and talking hawkish whereas the Fed is expected to lower rates again very soon.

Market confidence though is showing some comeback as investors/traders are nibbling at the high yielders once gain as the 'carry trade' gains ground.

Strong Aussie PPI figures overnight boost the local currency and this morning we look to see how well the latest B of E liquidity measures will work.