EUR/USD started around 1.4880 and gently ticked higher eventually reaching session high 1.4905, where ACB selling emerged capping the rally. Comments from ECB’s Nowotny, suggesting any ECB tightening is some ways away, helped pressure the pairing and we’ve drifted back to where we started, presently at 1.4875.

Talk of sell orders at 1.4900 up through 1.4950. Also talk of specific ACB standing sell orders up at 1.4920/30, good till nfps. Also talk of decent stops starting just North of 1.4915, so somewhat of a mixed bag up ahead.

Cable finishing morning marginally easier, presently at 1.6590 from an early 1.6615. The pairing rallied early but intially ran into good sell interest at 1.6620, rumoured to have been the BIS. However these rumours were later quoshed, the selling apparently having been down to a French name.

After a brief dip though, cable rallied again, reaching session high 1.6635, where decent selling from a UK clearer capped the rally. There was talk of stops gathered around 1.6640, but these remained safe.

The euro rose against the dollar on Monday as risk-averse sentiment eased on improved economic data and as stocks pared losses, but markets remained skittish before key central bank events and U.S. jobs data this week.

European stock markets shed losses made at the outset on news that CIT Group Inc ( CIT - news - people ), a U.S. lender to hundreds of thousands of small and medium-sized businesses, filed for bankruptcy on Sunday.

Market sentiment was also buoyed after data confirmed an expansion in euro zone manufacturing activity. Final euro zone manufacturing purchasing managers' index for October rose to 50.7 in October from 49.3 in September - in line with an earlier flash estimate and economists' forecasts.

It was the first time the reading has been above the 50.0 mark that divides growth from contraction since May 2008 and its highest level since April 2008 when it also stood at 50.7.

"Today's data suggest that the recovery in the euro area is starting to gather pace," said Colin Ellis at Daiwa Securities.

The euro rose as high as $1.4796. By 1237 GMT, it was up 0.3 percent at $1.4768.

The single currency also hit the day's high against sterling of 90.37 pence, as the pound was hit, with the government set to finalise plans this week to carve up rescued banks Royal Bank of Scotland ( RBS - news - people ) and Lloyds, triggering selling in their shares.

The UK currency is sensitive to news about the country's struggling banking system given the economy's heavy dependence on its financial sector, and a rise in UK manufacturing PMI data failed to boost the currency.

Dealers are also saying that news of at least one protester death in Iran has reignited fears of a protracted conflict and this in turn is aiding risk aversion across all markets.

By HY Markets | June 15th, 2009 3:36 am EUR/USD closed lower due to profit taking on Friday as it consolidated some of this week's rally. ...

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SAO PAULO, June 10 (Reuters) - Brazil's central bank offered to buy US dollars in the spot foreign exchange market on Wednesday, seeking to soak up a flood ...

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After gathering some positive momentum at the end of last week from US employment data, the US Dollar now faces a new ordeal. As the US Supreme Court attempts to block the sale of Chrysler to Fiat, recently gained confidence in the US economy has begun to show signs of wear. Forex traders may see added volatility to a market that was forecast yesterday to be flat. News events such as this tend to push markets in a way which traders can greatly benefit. Today is a great day to trade the USD! The Dollar moved on a number of factors in yesterday’s trading. One of the most important of these was the sale of Chrysler being blocked by U.S. Supreme Court. President Obama fears that this could kill the deal if the issue is not resolved in the nearest time. If this did happen, the effects on the U.S. economy may be disastrous. In turn, the Dollar may plummet as people could lose confidence in the American economy. In the meantime, forex traders are also trading on other issues, such as Obama’s plan for economic recovery. The Dollar rose against most of its major currency pairs yesterday, as Obama unveiled his plan to create new jobs, and tackle rising unemployment. The EUR/USD finished Monday’s trading lower by nearly 100 pips at the 1.3886 level. The USD also rose about 80 pips against the CHF to close at the 1.0934 level. However, the USD lost ground against the British Pound, as optimism returned to Britain, after the opposition Conservative party faired well in the European elections. The GBP/USD cross finished higher at 1.6024. Today, U.S. Treasury Secretary Timothy Geithner is set to be asked about the TARP (Troubled Asset Relief Program) repayments and forecasts for U.S. economic recovery in a Senate hearing at around 14:30 GMT. It would be a wise move for forex traders to open up their USD positions both prior to and after this major news event, as the market is set to be very volatile throughout today’s trading.

IMF says Euro-zone banks need a recovery plan A very quiet morning has turned into a big down-day for the JPY crosses Initial gains on regional bourses turn into losses Some US Banks allowed to repay TARP China to ease rules on investment overseas by its citizens/corporations Australian job ads fall for 13th successive month, this time by 0.2% and PM Rudd says expects unemployment to rise NAB survey of Australian business conditions falls 4 points UK retail sales fell 0.8% in May, YoY Fall in UK house prices is slowing down Rise in Treasury yields is vote of confidence in the economy- Fed China denies reports of iron ore price agreement

It has been a trading day with two very distinct halves. The first half saw almost no movement whatsoever but when some regional bourses gave up almost 1% gains and fell into the red and this was then followed by some heavy EUR/JPY selling out of Tokyo, we saw a different second half with one-way traffic in the JPY crosses. Many are attributing the selling to the IMF statement on Euro-zone banks. EUR/USD opened at 1.3890, rose early to 1.3930 but has since drifted lower on the cross selling. AUD/USD led the way up in early trade as buyers appeared keen but some insipid data and remarks from PM Rudd have undermined the AUD both against the USD and the JPY. Sterling has taken a back seat as usual during Asia but early European trade may look favourable on the latest RICS housing data. Dealers report heavy stops in EUR/GBP below .8560. Markets: Hang Seng -1.5%, Nikkei, Shanghai and Kospi -1%, Sydney -0.4%. Gold -$3 at $949/oz. Oil flat $68/bbl. Ranges:EUR/USD 1.3854/1.3936, USD/JPY 97.88/98.56, EUR/JPY 135.65/137.30, AUD/USD .7855/.7933, cable 1.5985/1.6104.

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Japanese current account surplus for April -53.4% YoY against expected -39% Centre-right parties the big winners in European parliament elections Top Chinese banker calls for US help in the development of Yuan debt markets Sterling loses ground on the crosses after a very poor showing by Labour Nikkei up, Hang Seng down, in mixed trading on regional bourses Australia closed for public holiday China set to compromise on iron ore price US set to get tougher with North Korea JGB prices fall in line with US treasuries on Friday where the 10-year yields continue to rise

EUR/USD opened around 1.3965 and USD/JPY at 98.75 after big moves in NY after the NFP on Friday. The first move was down in EUR/USD and early trade saw the 1.3935 low from Friday get broken. The follow through was very poor and dealers refer to significant bids at 1.3925 which the selling could not even make a dent in. Short-covering immediately ensued and EUR/USD popped up first to 1.3975 and then to 1.4000 as the short-covering gathered pace. There were no major announcements to move the market. USD/JPY followed the EUR around the place and EUR/JPY was exceedingly quiet in a 40 pip range. Sterling lost ground, especially against the EUR, after the poor government showing in the weekend elections. The AUD was quiet due to the local public holiday. Markets: Oil slipped a little, now back under $68/bbl. Gold also posted a small loss to $960/oz. The Nikkei is up 0.8%, Hang Seng -0.6%, Shanghai is up 0.25% and the Kospi is also marginally higher. Orders: Strong bids now touted at 1.3925 in the EUR/USD; stops below .7875 in AUD/USD; unconfirmed speculation of option protection at 99.00 in USD/JPY with likely stops above; strong bids in USD/JPY at 97.50/65. Ranges: EUR/USD 1.3925/1.4001; USD/JPY 98.29/84; USD/CHF 1.0834/95; AUD/USD .7930/85; cable 1.5927/79; EUR/JPY 137.35/95; EUR/GBP .8734/80

The NY Times had this nice neat graphic view of the decline and bergening recovery in the US labor market.

Two-year note yields are 31 bp higher this afternoon than the were before the employment report. Comments from NY Fed president Dudley suggesting the Fed can rein in its QE policy if the bond back-up is driven by economic optimism (rather than fear of deficit spending) is helping ramp the dollar higher now as well. EUR/USD has fallen to 1.3950. USD/JPY has broken trendline resistance at 98.30 and cable has dipped to 1.5958. AUD and CAD are being shellacked, perversely, as position adjustment outways upbeat economic fundamentals. The market is just too long the commodity currencies…AUD trades at 0.7955 and USD/CAD at 1.1170.

The dollar maintained most of the gains made Wednesday, with only a slight retreat in the USD in Asian trading Thursday as the market consolidated. ...

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GM says the bottom of the car market comes this spring. The NAHB said the same about housing earlier today. Hope they are right EUR/USD is firm, as are equities. EUR/USD trades at 1.4315 while the S&P is up 0.4%.

SAO PAULO, May 28 (Reuters) - Brazil's central bank offered to buy US dollars in the spot foreign exchange market on Thursday, seeking to soak up a flood of ...

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