USD Dollar (USD)

The Dollar fell across the board after the Federal Reserve said the global recession is reaching its end and signaled it will tolerate a weaker Dollar, which encouraged investors to buy riskier assets. Unemployment Claims came out batter than the forecast at 466K vs.500K forecast and New Homes Sales climbed more than forecast at 430K vs. 408K forecast. NASDAQ and Dow Jones rose by 0.32% and 0.29% respectively, crude oil jumped by 2.6% closed nearly to 78$ a barrel and Gold (XAU) rose by 1.8% reached to a new record high during the day (above 1190$ ) but finally closing at 1187$ an ounce . No economic data expected today.

EURO (EUR)

The Euro surged to a 15 month high against the Dollar after the Federal Reserve refrained from voicing concern over the U.S. currency’s decline. GFK German Consumer Climate came out at 3.7 vs. 4.2 forecast. Overall, EUR/USD traded with a low of 1.4955 and with a high of 1.5144. Today, German Prelim CPI is expected at 0.0% vs. 0.1% prior and M3 Money Supply is expected at 0.7% vs. 1.8% prior.

British Pound (GBP)

The Pound rose versus the Dollar after the GDP report data was released and showed the UK economy shrank less than previously estimated in the third quarter, coming out at -0.3%, bringing the longest recession on record closer to an end. Overall, GBP/USD traded with a low of 1.6574 and with a high of 1.6744. Today, CBI Realized Sales is expected at 12 vs. 8 prior.

Japanese Yen (JPY)

The Yen continued to strengthen versus the Dollar after breaking below 88 for the first time in 10 months as the Federal Reserve’s signal that it will tolerate a weaker Dollar encouraged investors to buy assets outside America. Overall, USD/JPY traded with a low of 87.21 and with a high of 88.63, trade balance came out better than expected at 0.42T vs. 0.31T forecast. No economic data expected today.

Canadian dollar (CAD)

The Canadian Dollar strengthened to the highest level in a week versus the Dollar after Russia’s central bank said it will add the currency to its reserves and as copper rose and gold headed for the longest string of gains in almost three decades. Overall, USD/CAD traded with a low of 1.0449 and with a high of 1.0583. No economic data expected today.

The Dollar was mixed gaining versus the Euro and weakening slightly versus the Pound ahead of today\’s Interest Rate Decision. Factory Orders rose by only 0.9% versus 1.1% expected. NASDAQ gained by 0.4% and Dow Jones weakened by -0.18% as investors bought energy and industrial stocks due to rising commodity prices. Crude gained by 1.75% closing at 79.50$ a barrel and Gold (XAU) popped by 2.93% closing at an all time high of 1084.3$ an ounce after International Monetary Fund announced it sold 200 metric tons of Gold to India\’s central bank. Today, the FOMC will announce its Interest Rate Decision, expected to remain 0.25%. Before the Rate Statement ADP Non Farm Employment Change is expected with -188K versus -254K prior, a lower number will show worse employment data. ISM Non Manufacturing PMI is expected better with 51.6 versus 50.9 prior.

EURO (EUR)

The Euro weakened versus the Dollar as economists predict the ECB won\’t raise rates before the Fed in order not to create further appreciation in the Euro which damages exports. EUR/USD traded with a low of 1.4625 and with a high of 1.4810. Today, European PPI is expected worse with -0.3% versus 0.4% prior and Final Services PMI is expected unchanged with 52.3.

British Pound (GBP)

The Pound gained slightly versus the Dollar after reaching a 7 day low earlier. Construction PMI came out worse with 46.2 versus 47.2 expected and Hailfax HPI came out better with 1.2% versus 0.8% expected. The Pound continues to be very volatile as concerns about Britain\’s bailout plan and the conditions in the financial sector continue to worry investors. Overall, GBP/USD traded with a low of 1.6261 and a high of 1.6454. Today, Services PMI is expected to grow slightly from 55.3 to 55.4.

Japanese Yen (JPY)

The Yen weakened versus the Dollar and gained versus the Euro. Japanese Monetary Base was weaker with 4.4% versus 4.5% prior. Overall, USD/JPY traded with a low of 89.87 and a high of 90.57 and EUR/JPY traded with a low of 131.72 and a high of 133.98. Today, BOJ\’s President Shirakawa will speak and might give clues regarding future monetary policy. Monetary Policy Meeting Minutes will be released later and will give insight about the last Interest Rate Decision.

Canadian dollar (CAD)

The Canadian Dollar gained versus the Dollar as commodities kept advancing and energy stocks gained. Overall, USD/CAD traded with a low of 1.0654 and with a high of 1.0852. BOC Deputy Governor John Murray will speak at the Chamber of Commerce today.

EURO (EUR)

The Euro weakened versus the Dollar for the third day in a row on concern a rally in stocks and commodities can’t be sustained. M3 Money Supply came out worse than expected at 1.8% vs. 2.1% forecast. Overall, EUR/USD traded with a low of 1.4770 and with a high of 1.4926. Today, German Prelim CPI is expected at 0.1% vs.-0.4% previously.

British Pound (GBP)

The Pound strengthened against the Dollar after the Confederation of British Industry\’s distributive trade\’s survey reported sales balance rose to +8 in October from +3 in September, better than economists\’ forecasts of a rise to +5. This is the fastest pace of growth since December 2007. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6438. No economic data expected today.

Japanese Yen (JPY)

The Yen rose against the Dollar for the first time in 6 days as a plunge in Treasury yields after the record $44 billion auction in two-year notes made the Dollar less attractive to Japanese investors. USD/JPY traded with a low of 91.70 and with a high of 92.32. Retail sales came out at -1.4% vs. -1.5% forecast. No economic data expected today.

Canadian dollar (CAD)

The Canadian Dollar appreciated from a three-week low, gaining for the first time in four days amid speculation its decline was too big to be sustained after it reached a key technical level. Overall, USDCAD traded with a low of 1.0626 and with a high of 1.0716. Today, BOC Gov Carney Speaks.