The positive sentiment is still evident and the choppy trading today was merely end of the week trades alongside downbeat manufacturing figures that pressured investors with more signs of global recovery weakness.
With the weak coming to an end and softness seen in manufacturing across major economies, the dollar was supported to ease some of the losses on much needed correction, though remains heading to a strong weekly loss.
The dollar index is trading around 74.46 recording the high of 74.46 and the high of 74.55. The index is heading to its first weekly drop in four and nearly surrendering most of the gains on the back of have demand from the deepening debt crisis.
We can see global stocks still green, though losing some of the upside momentum. European stocks are trading still higher, with the STOXX 50 adding nearly 0.20% to hover around 2854.23. Eased debt woes remain the positive support for equities amid a needed correction for currencies before the week comes to an end.
Data since the morning showed slowing manufacturing growth in China, which is on the marginal expansion barrier as the index fell to 50.9 from 52.0. European manufacturing slowed and UK activity slumped ahead of the U.S. ISM that is expected to reflect the same, weighing on the sentiment that the sad story is far from over and despite easing debt woes, growth is still slowing!
The correction continued and the euro also fell versus the dollar as the EUR/USD currently hovers around 1.4478 and above the low of 1.4455. The pair reversed earlier gains after the pair failed to sustain the gains above 1.4450 where it recorded the high for the day and declined to current levels, though still heading for a strong weekly gain from the opening low's on Monday of 1.4190.
Sterling on the other hand continued the downside move following the worse than expected PMI manufacturing that showed the recovery in deed losing steam which is needed for UK growth, especially that slowing manufacturing activity is a pressure with slowing exports that was the pillar for growth in the first quarter.
The GBP/USD is trading around 1.6009 recording the high of 1.6095 and slumping to the low of 1.5985.
The yen also surrendered to the dollar's strength after two days of gains. The USD/JPY is currently trading to the upside around 80.74 recording the low of 80.48 and the high of 80.88.
More volatility will be seen with the manufacturing figures from the United States and as the trading week comes to an end, though generally the market is on the way to cap a new green week after the heavy pessimism as the unwinding of Greek default is surely seen ahead of the finance ministers meeting next Sunday...