The markets caught a bit of a breather in London trading after the onslaught of risk appetite witnessed overnight. News that Obama's bad bank plan looks to be coming to fruition had equities across the globe bid. European bourses were up a little more than 2% on average and this looks like it will follow-through into NY equities this morning. Economic data were mixed out of the eurozone with German Gfk consumer confidence printing a better than expected 2.2 in February (though no improvement from the prior month) while the French business demand survey slumped to -49 in January from -23 the prior month – and the lowest since the index began back in October 2001.

The price action in FX was relatively modest as markets await more details of the bad bank plan along with the FOMC press statement later in the NY afternoon. EUR/USD was practically unchanged in London trading and sitting near the 1.3260/65 area. Trendline resistance which currently comes in near 1.3320 looks like the next critical trigger. One of the bigger movers was GBP/USD which ticked up about 55 pips towards 1.4300 as the UK looks like one of the major beneficiaries of the bad bank plan. US corporate earnings remain a risk and have the potential to nip the rally in the bud if they disappoint markedly.

Upcoming Economic Data Releases (NY Session) prev est

* 1/28 16:00 GMT AS ECB's Nowotny Speaking in Vienna 28-Jan

* 1/28 19:15 GMT US FOMC Rate Decision 28-Jan 0.25% 0.25%

* 1/28 20:00 GMT NZ RBNZ Official Cash Rate 29-Jan 5.00% 4.00%

* 1/28 21:45 GMT NZ Trade Balance DEC -520.0M -100.0M

* 1/28 21:45 GMT NZ Imports DEC 4.21B 3.80B

* 1/28 21:45 GMT NZ Exports DEC 3.69B 3.76B

* 1/28 GE Consumer Price Index (YoY) JAN P 1.10% 1.10%