Today's Action

With US Retail Sales and the ECB's interest rate announcement occurring, the commodity currencies have been the real story of the day.

First, a recap of the numbers: (as of 19:00 GMT)
EURUSD : 1.4510 (+2 pips)
GBPUSD : 1.6338 (+50 pips)
AUDUSD : 0.9313 (+70 pips)
USDCAD : 1.0250 (-60 pips)
GOLD : 1144.00 (+ $6.00)
CRUDE OIL :  79.90 (+ $0.20)
S&P 500 :1144 (+ 2.00 points)

Any changes from the ECB?

The ECB as expected left rates unchanged, and in ECB President Trichet's remarks, he voiced support for a strong dollar policy, and mentioned that Greece and other troubled Eurozone countries are not in danger of being kicked out of the Eurozone, but they must continue to implement fiscal responsible policies. Nonetheless, the overall effects to the euro were muted, as the EURUSD traded lower after Trichet's strong dollar remarks, but quickly traded back towards the 1.4500 level. It appears that Forex traders are viewing both the US and Eurozone similiarily, and waiting for one of them to take the lead on raising rates. Therefore, at Go Forex we believe that the EURUSD will continue to trade horizontilay for the next few weeks between the 1.4200 to 1.4600 level.

US Retail Sales

US December Retail Sales were worse than expected, and subdued earlier optimism of a rosy holiday shopping season. Nonetheless, the news was more or less ignored, and traders were more impressed with the solid Business Inventory numbers. As such, stocks which initially appeared to be moving lower have rebounded and have caused risk appetite to rise in the Forex marketplace. This has caused the AUDUSD to trade back above 0.9300, as it briefly hit a 2010 high of 0.9328.