There are no important US data released today however Federal Reserve Bank of St. Louis President William Poole is scheduled to speak, but not until after US Markets close.
Meanwhile, forex markets have mostly brushed off the G7 meeting itself as its final statement was little changed from the previous meeting in which the lack of a coordinated response to the subprime fallout may be adding to some of the risk aversion in currency markets early today on continued fears of a US or global recession.
Consequently, nervous investors are dumping some of their bets on higher-yielding currencies to buy the low-yielding yen, which is used as a safe haven. That has pushed the dollar lower against the Yen.
Weak economic data in addition to lower rates made the dollar less attractive to investors as yields on US assets fall. Worries that the US will suffer a recession still exist in the mind of traders which also keeps them far way from the greenback. However, while most analysts agree that the US is not doing well, they need more data to get a sense of the magnitude of the economic data.
Hence conclusion seems the market attention will continue to focus on data releases, which will include Bernanke's speech this week in which he is expected to state that the Fed will likely continue easing monetary policy amid slowing economic growth.
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