US Dollar (USD)

The Dollar weakened and the Euro and gained versus the Pound and the Yen as fears that a trade war will erupt between China and the U.S were subdued as it became apparent that each economy has too much to lose. The U.S is a huge market for Chinese exports and China is the largest holder of U.S government debt. NASDAQ and Dow started on the negative side, but finished slightly positive with 0.52% and 0.22% accordingly as investors turned to utilities and financials. Crude oil declined by -0.32% closing at 69.07$ a barrel. Gold (XAU) lowered by 0.54% closing at 999.5$ an ounce. Today, Retail Sales are expected higher at 1.9% versus -0.1% and the PPI is expected to rise by 0.9% versus -0.9%. Fed's Chairman Bernanke will speak about the financial crisis. This might influence interest rate expectations.

Euro (EUR)

The Euro gained versus the Dollar after the European commission published updated economic forecasts that showed a possible expansion of 0.2% in the 3d quarter and 0.1% in the 4th after a contraction of -0.1% in the 2d quarter of the year. However the yearly forecast for the GDP remained -4%. Industrial Production came out -0.3% as expected versus -0.6% prior. Overall EUR/USD traded with a low of 1.4515 and a high of 1.4651. Today, German ZEW Economic Sentiment will be released, expected higher at 59.9 versus 56.1 prior.

EUR/USD - Last: 1.4610

Resistance

1.4655

1.4725

1.475

Support

1.4575

1.4515

1.446

/