Today's Market Update

Risk appetite got a boost by China today in Asia, helping to pull the Dollar off of recent highs, but a late session reversal ahead of important German data has left markets mostly close to unchanged for the day. China has been watching its stocks slide on fears that Chinese banks might restrict lending due to a tightening of the money supply, but comments from a Chinese vice Governor of the central bank stating China would use a loose monetary policy for recovery was the match hitting the fuse for risk appetite. The loose monetary policy comment helped ebb concerns of growth and stocks rose and safe haven currencies were ditched. Now traders need to rethink their positions ahead of Germany employment data due later today.

EUR/USD came close to retesting its NY session two week low of 1.4007 but only just hit 1.4010 on the bottom. As the risk came back to the market the pair got as high as 1.4070 before slipping a good 20 pips ahead of the above mentioned data. GBP/USD hit a weekly low of 1.6340 early on, but the losses were quickly erased as the pair shot up to break the 1.6400 figure. Risk helped the Aussie dollar grind its way higher for the session posting modest gains of around 30 pips, but the Kiwi dollar traded sideways after hints of a rate cut dropped the currency from 0.6575 to near 0.6505 in one swoop. The RBNZ left its benchmark rate unchanged at 2.5% but as stated left the proverbial door open for future cuts.

USD/JPY dropped as low as 94.83 before turning thing around and getting back above the 95.00 figure. EUR/JPY made a good many moves between 133.20 and 133.96, but the net results were that the pair ended the day right where it began it. Industrial Production data out of Japan was favorable for the fourth consecutive month today although the pace slowed from last month. The Nikkei was unsure of itself today and sputtered close to unchanged for the day.

Upcoming Economic Data Releases (London Session) prior expected

7/30/2009	7:55	GE	Unemployment Change (000's)	JUL	31K	43K
7/30/2009	7:55	GE	Unemployment Rate (s.a)	JUL	8.30%	8.40%
7/30/2009	9:00	EC	Business Climate Indicator	JUL	-2.97	-2.83
7/30/2009	9:00	EC	Euro-Zone Consumer Confidence	JUL	-25	-24
7/30/2009	9:00	EC	Euro-Zone Economic Confidence	JUL	73.3	75
7/30/2009	9:00	EC	Euro-Zone Indust. Confidence	JUL	-32	-30
7/30/2009	9:00	EC	Euro-zone Services Confidence	JUL	-20	-19