The sentiment is well and strong as the greenback seems the weakest of them all; while with growing expectations of further 50 bp cut next month of the feds key funds rate, all we can say is losers weepers!

Americans' housing market has yet to find a bottom and until that actually happens all we can say is deterioration marks the path of sinners! With a fragile dollar and strong performance in equity markets which are now on the rise especially as bond insurers are to keep their AAA ratings preventing a major crash from crippling the markets to a vegetative state this time helped majors acquire back some momentum and pursue gains.

Germany, the heart of the EU pumped back a little more blood into the veins of its economy, as despite slowing output growth confidence data coming above expectations boosted the 15 nation start, as in nowadays markets sentiment is the sole prosecutor as if businesses and households as well sink in fear they themselves will create an economic burden even if the economy was perfectly sound! The euro managed to bounce up and strong from were demand was seen at 1.4780s leaping to the over seventies resistance at 1.4870s which is still facing the euro to leap up higher closer to its 1.49 targeted area as it trades now near strong levels at 1.4860s; the euro managed the upside wave as well against the Japanese yen setting the highest of 160.55 after acquiring good momentum from the Asian session near 159.60s.

Sterling is trading stronger today as took it out against the dollar heading back into the $1.97s once more were the strong level ahead the pound restricted the motion at 1.9720s, in the Asian session this morning the 1.9640s provided the currency with strong support as the pair attempted to breach down yet did not manage the move reversing to the upside mentioned levels, while currently trades near 1.9710s. The pound as well was helped by good risk appetite as despite the outlook for rate cuts in the UK the pound still masters the edge of the widest rate differentials against the yen the GBP/JPY pair managed to leap today test the strength of 212.86 which proved to be still valid and needs strong momentum for the pair to breach it up today to extent the upside targets.

Japan's pride and joy, the yen, is battling a weak dollar and gluttonous investors, and both opposing headings are ripping the currency apart, as mentioned the yen fell against its European rivals, yet against greenback still is trading sideways as both are currently fragile to overcome the other! The dollar could not take the pair to maintain 108s falling from its opening levels highest of 108.13 while the yen on the other hand could not take the pair lower beyond 107.80s and now runs the tight ranges of late 107s and early 108s; noting that even the transition in history from the late 70s of peace and rock and roll was hard into the 80s so as we say history is a key essence of success of nowadays nations!!!