As the US equity markets are about to open, the GBPUSD and EURUSD have given back much of their earlier gains as the GPUSD is trading at 1.5315, which is slightly below its level pre Claimant news, and way off its 1.5212 highs of the day. Also, the EURUSD has slowly fallen back towards 1.3750 as sellers have returned to the market after 1.3800 was hit, but no further momentum materialized.

On the other hand, the commodity currencies continue to hold their gains with the USDCAD, NZDUSD, and AUDUSD, all at or near their best levels of the day. This is occurring even though gold is slipping and has fallen back towards 1125, as US PPI numbers showed no indication of any inflation occurring.

What this is telling us is that Forex traders continue to be chasing yield and currencies where they believe the underlying central banks are in tightening directions. It also fits well with the advances of US stock futures which are higher on the day, continuing the momentum from yesterday.

Looking ahead, the big potential mover is the Crude Oil Inventory numbers due out at 14:30 GMT. If they show a greater than expected build, it may cause Crude Oil prices to fall which may lead to carryover weakness in gold and the commodity currencies.