After majors declined in the early morning transactions they seem to be gaining momentum against the dollar to pull themselves back up in the market. With the FOMC meeting due next week concerning interest rate decision where speculations are for another cut in interest rates and the unwinding of carry trades, majors were not performing as well in the beginning of the session. The housing data that investors are waiting for might be the trigger that will either hurt or heal the dollar against majors. However, currencies started to incline gradually taking the Euro to 1.4220, the sterling to 2.0485 and the Yen to 114.50.

The 13 nation currency is maintaining its trading levels within narrow ranges after previously recording a high of 1.4267 and a low of 1.4188. After the effect of the unwinding of carry trades emerged in the markets, the Euro slightly gained momentum. The Euro zone released their fundamentals for today where the current account showed a surplus remaining at 3.8 billion in August compared to July's reading of also 3.8 billion after it was revised upwards from 1.7 billion. The PMI manufacturing flash estimate reading for October came in at 51.5; lower than both the expected and previous readings of 52.9 and 53.2 respectively. As for the PMI services flash estimate reading it was released at 55.6 better than the forecasted reading of 54.5 and September's reading of 54.2.

Similar to the Euro, the Royal currency was declining in the morning but then started to incline against the U.S. dollar. The high and low for the day are still at 2.0512 and 2.0426 respectively. With the lack of fundamentals for the U.K. economy in the economic calendar, trading for the sterling is based on technical movements.

As for the Yen, the buying back of the currency took the USD/JPY pair to record a high 114.94 and a low of 114.20 as the unwinding of carry trades made it more tempting to invest in.

Perhaps the most significant piece of information still to come today will come from the U.S. as it will reveal its reading for the Existing home sales for the month of September where predictions show a drop to 5.25 million from the previous reading of 5.50 million. Finally, ECB's President Mr. Trichet speaks later today so readers look out for any hints concerning the future outlook of the Euro Zone…