After a good run of better than expected eurozone data and a shift in risk trends in the financial markets the EUR/USD traded at an 11 week high overnight to touch $1.3004 – a key target point for speculators. It is clear that investors are turning their attention away from Euro-zone soveriegn debt risks and more towards the corncerns that surround the US economic recovery and key fundamental and technical developments accross the markets.

With market sentiment hit by yesterday’s disappointing US consumer confidence report and with this evening’s release of the Fed’s Beige Book survey US Dollar sellers should note momentum with “Long” positions against the Dollar may increase therefore Dollar sellers may look to cover short / medium term requirements as the Pound has gained nearlly 500 pips against the USD in the last 5 days.

Data released yesterday showed that US consumer confidence (the Conference Board measure) fell in July to its lowest level since February of this year, a clear sign that fundamental developments in the US are showing signs of detterioration. What may be siginificant for USD price movement is the release of the earnings reports with 24 S&P 500 companies looking to release their figures today accross the financial markets- this will certainly dictate risk sentiment in the market and in turn weigh on price movement accross the Forex markets and in particular the Equity Index futures.

Today the Pound has opened up mixed against its major counterparts with risk appetite clearly playing the theme in the markets this morning, currently trading at 1.1988 against the Euro and up on the day against both the AUD and NZD, however movement may be limited as we approach the Royal Bank of New Zealand rate annoucement. The Kiwi has already risen by 3.5% against many of its counterparts following on from the last announcement and with expectations increasing for another rate hike, Kiwi price movement is forecast to be bullish.

If you would like to discuss your requirement buying into the majors do not hesitate to contact me on my direct line +44 1736 335264 or you can email me direct at tom.trevorrow@torfx.com