Focus now is on the US economy and its headings into stagflation! Surging energy prices and imported inflation amid already perceived slowing economic growth all combined led to such perception alternating a normal state of recession. The dollar is still depreciating against majors in a downside steady wave.

The concentration now drifted to the rather good fundamentals from the Euro Zone, which in a way we can confirm Mr. Trichet's comments that economic fundamentals are still sound in the EU. The data combined with a weak dollar provided the euro with the momentum to set the high at 1.4851 before resuming to its lowest at 1.4789 which provided more demand on the euro setting to trade once more above 1.48, the euro's failer to progress breaching the mentioned resistance at 1.4840 and 1.4860 and also the demand seen in the mentioned low at the support level provides that both levels are still valid for the euro and need further momentum to breach it despite positive signals on momentum indicators.

Sterling which managed to consolidate among 1.9683 and 1.9608 trying to trade above 1.97; where this range will provide the GBP with further upside momentum. The pound is taking advantage of the dollar's weakness to continue to acquire further gains, evident by profit taking that appeared to almost 75% of the total taken positions on the pair which in role might lead the pound to good demand saturated area around 1.9625 before reaching once more to the profit taking levels at 1.9700.

The dollar against the yen moved to the downside as the conceptions to the American economy's fragile state are being further confirmed. While the negative technical pattern on the pair also supported the downside path good offers on the pair resulted in setting the low at 106.64 after the highest was set at 107.57.