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The USD is trading lower to start the week as equity markets surge, gold trades at a new record high and the Fed’s Bullard says he favors extending MBS purchases beyond Q1 2010, Bullard’s statement encourages speculation that the Fed will maintain stimulus measures, EUR supported by improving manufacturing and…

John Ross wrote in a recent Currency Currents he didn?t want to rip-off the Milk Board advertising campaign by asking if you?ve ?Got Gold.? But it appears more and more have ?Got Gold.? Yet another new high was chalked up this morning in white-hot yellow metal. This comes at a…

Today’s PMI data were generally upbeat – with the main exception being a decline in French manufacturing PMI. French service PMI climbed above 60 and we expect that other indicators will follow. Nevertheless the speed of increase is slowing down and some of the details were more downbeat.

As last week’s data, this week economic indexes posted from the U.S are forecasted to show that the economy is so far recovering at a truly sluggish pace and continues on facing major obstacles such as the ongoing rising unemployment and overall tightened credit conditions, having investor’s confidence really flimsy…

Gbp/Usd is trading at the 38.2% Fibo retracement (1.6541) of Friday’s high of 1.6674. If the pair can break above 1.6541 the next level to keep an eye on is the 50% fibo at 1.6567. If the pair stays below 1.6500-05 should lend light support. It is also interesting to note that the 200 hour M/A lies at 1.6676, a shade above Friday’s high of 1.6674. For longer term bulls this could be a target if the pair moves higher.

St. Louis Fed President, James Bullard said in a speech over the weekend that the Fed should retain the flexibility to respond through continued purchases of mortgage securities in 2010 should it see the need. In conjunction with the views of Chicago?s Evans who sees perhaps no change in rates…

Positive equity and commodity markets had a strong influence in the foreign exchange arena on Monday, sending the dollar index down to the 75.00 support area once again during the overnight session. The major currencies posted some small declines around the Sunday open, but soon afterwards the market reversed tack…

The pair is starting off the week reversing off its intra day low at 6471 level in early trading today. We will want to see further recovery higher beyond the 1.6674 level, its Nov 20?09 high on a daily closing to build a platform for further corrective recovery. If this…

Rising from its past week losses, EUR was seen rallying strongly today reversing all most of its last week losses and clearing the way for further upside towards the 1.5014 level, its Nov 16?09 high. This current rally is consistent with our medium term bullish structure view referenced in our…

Cable has honoured the Support at 1.6460 and has risen during the day. There don’t seem to be too many hurdles on its way up except for 1.6665. Beyond this, the pair may rise towards 1.6750-1.6800 over the course of the week. If 1.6459 seen on Friday turns out to…