Positive and upbeat data from the European continent, and mainly from the euro area, managed to preserve the wave of optimism that is dominating markets. The data continued the strong path paved in the Asian session after the RBA raised rates and the BoJ extended emergency measures and increase short-term funds to support falling prices and also weaken the surging yen.
Above that, equities continued their green trading in Asia after America rebounded by the end of last night's session, opposing the losses endured by Europe; where today Dubai World said they are in talks with banks to restructure their liabilities and ensure stability in the market, easing fears over Dubai's need to default on their debt. All the optimism pressured a new wave of dollar selling which took greenback to tumble against major traded currencies.
The euro managed to advance versus the dollar rising from 1.4970 to record the highest so far at 1.5081; this appreciation was a mixture of euro strength on the back of positive economic data, rising risk appetite, and a weak dollar. Rising European equities also contributed in easing the fear that spread across the market in the past couple of sessions preserving the appeal of the euro as a higher yielding and stronger currency which continues to trade at the time near its highest intraday recorded levels.
Despite the appreciation sterling managed to record, it remains weak versus the dollar; positive housing data that were released early in the European session managed to support sterling slightly, yet couldn't hold against the abysmal and unexpected drop in the manufacturing sector's performance according to CIPS PMI. The pair advanced from its lowest around 1.6389 to set the highest at 1.6575 and now settled above the 1.6525 support which might provide upside momentum for the index to head to the upside to retest 1.6595 levels.
The measures taken by the BoJ in the emergency meeting were preserved by markets as means to weaken the yen, which might be indeed followed by further intervention measures as they tend to weaken their currency that reached a 14-year high versus greenback. The USDJPY traded among 86.14 and 87.53 yet we can see it now settling among the support at 86.25 and the resistance at 87.00 with some upside bias affected by the selling wave on the Japanese yen, which was powered further by the heading towards higher yielding investments by market participants.