Another week is coming to an end, with markets still trading on the negative sentiment present in the aftermath of US stimulus package agreement by the Senate! US stocks rose slightly yesterday and NIKEI followed in the same way after slight optimism that global leaders will agree on more help for struggling economies in this weekend's G7! It should also be noted that China's economy is showing signs of recovery too.

The EUR/USD has been trading lower following this morning's German GDP number shrank its most in more than 20 years! The same has happened with the French economy; therefore traders have exited any euro positions they have! The fact that the Euro zone data continues to disappoint weighs on the currency and any rallies toward 1.30 fade quickly. The next level to watch on the downside is 1.2830 ahead of 1.2780. If the latter gives way we may have further losses towards 1.27 and the euro cannot sustain its gains over 1.2950, showing how negative the sentiment currently is. However, as today is Friday we may see some profit-taking in the pair and also traders may not want to be exposed amid the G7 meeting!

The pound has trading higher since early in the European session which is mainly due to the downside trading EUR/GBP. The bad economic data out of Europe, in combination with no data out of UK, is weighing on the pair and further downside may be seen if 0.8830 gives way. The next level to watch is 0.8780 ahead of 0.8725.

Today's US economic calendar is empty apart from consumer confidence figures later on and the number is expected negative once again, however unless it gives us a big deviation from the forecast we may not see any trading action. For now traders are concentrating on the G7 where central bankers and financial ministers from the 7 richest countries in the world are gathering to discuss the current economic problems. At times like these, where the global economic future seems so dismal, investors will monitor all statements in order to assess what the next step is and we can expect statements regarding the monetary policy, so it will be interesting to see what officials will say regarding rates!

Let’s see how the day will progress until New York closes and if the dollar will continue to gain against the euro, amid bad Euro zone economic conditions and also risk aversion towards the greenback. All eyes and ears will be upon the G7 leaders this weekend and therefore traders may not wish to keep open positions during the weekend pause amid fears of market gaps on Sunday's opening…