The greenback was trading in a mixed way in the recent 2 days unfazed of the new equities market gains which pushed Dow to a new high closing yesterday above 8900. The greenback was creeping up versus the British pound while it was groveling versus the Japanese yen and in this same time the single currency which is waiting for the release of July germane IFO to go up to 86.5 from 85.9 in June next Friday is still trading around 1.42 versus the greenback as there were no significant data to move it from here and it looks that the market has become pricing on these stocks gains and cautious from an inevitable profit taken wave can start at any moment.

Yesterday, Bernenke has refereed in his testimony in from of the congress to the current weakness of the labor market which can effect negatively on the consuming spending downplaying the inflation upside risks in the next 2 years and there is no change of the fed's easing policy before an improving of the labor market.

There was no a mentioned change in the market after his testifying too as the market looks waiting for more important data in the next 2 weeks before moving the greenback to know more about the current pace of recovery, Since, the recent release of June US consumers confidence survey which has declined to 49.3 and it was expected to be 57 and the weak figure of US July consuming sentiment survey of University of Michigan preliminary reading which came down to 64.6 and it was expected to be 71 and we wait its final reading next Friday to be 71 from 70.8 in June.

Best wishes

FX Consultant

Walid Salah El Din
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