The dollar weakened behind a really in risk appetite with most of the majors seeing gains against the greenback. The EurUsd rose 75bps through 1.32, while the UsdJpy picked up 42bps at the low range of 89. The GbpUsd continues to build momentum to the upside, up roughly 140bps trading with a 1.42 handle. Equity markets are positive ahead of the FOMC meeting scheduled for later today, the Dow is up over 100pts or 1.36% and the FTSE picked up 75pts or 3.4%. Bond yields were mixed in the US, but rates in Europe are lower across the curve. Commodities showed gains in the energy sector with oil at $41bbl, but slight drop in precious metals with gold at $896oz.

Economic data out of the Eurozone saw a small bright spot in German Gfk consumer confidence this morning. The reading surprised investors coming in marginally better than expected at 2.2 vs. its previous result of 2.1. The better than expected consumer confidence figure accompanies the uptick in German Ifo, creating a much needed optimism in the region. Needless to say, expectations for any economic releases out of the Eurozone are extremely low, and by no means does the recent news mark the beginning of a recovery phase. We should see the Euro and Gbp trade higher against the dollar as long as risk appetite sustains its current strength (higher equities and lower VIX). The Fed meets today in the US to discuss monetary policy, we don't expect rates to be changed. Investors will be listening keenly for the Fed's outlook on the economy, and what their expectations within the context of the new administration.