The market started the day with correctional tendencies pushed by Japanese readiness to weaken the yen and the BoJ to add stimulus measures to support the economy, which cracked a small window of opportunity for other central bankers to follow suit.
Surely, the move did not last, especially as equities reversed to the downside on the global recovery's faltering signals. The correction was needed in the morning to relief momentum indicators, and that sentiment is clear on the dollar's movement. The dollar rebounded against its peers from the recorded low at 82.93 to set the high of 83.51 and still trading with upside tendency ahead of the expected rise in durable goods sales and unchanged housing activity.
The euro was pressured by the credit rating downgrade for Ireland as investors were reminding of the ongoing burden and discarded the positive sentiment reported from Germany, as the biggest economy in the area is seen much better placed than its peers but not sufficient to secure the area's stability alone.
The pair corrected slightly to the upside in the morning setting the high of 1.2726 retesting the breached neckline around that area to reverse from there lower setting the low of 1.2607 and still currently trading flat.
UK on the other hand lacked major fundamentals, yet seemingly sterling is on the rise in celebration of the Prime Minister's new baby girl! Sterling is still higher versus the dollar yet off early highs set at 1.5460 currently hovering around 1.5422.
Regarding the Japanese yen, the currency is still weak following the comments from Finance Minister about the readiness of authorities to take the appropriate measures to save the economy and halt the yen's appreciation which lingers at its highest in 15 years versus the dollar.
The USDJPY pair is trading bullishly since this morning recording the highest at 84.67 though despite the tendencies for continuing to the upside we favor the reversal to the downside as far as trading is steady below 85.50.