The Japanese yen was under pressure recently because of Ben Bernanke's optimistic speech by the end of last week about the worst of the credit crisis which is looking behind of us currently focusing on the current tackles in front of a reliable economic growth after the credit crisis. His comments have spurred a new wave of cheeriness driving the stocks markets up with the end of last week amid better than expected data from the housing market after the release of  July US existing homes sales which were forecasted to be up by just 2.7% but they have surprised the market by grown up by 7.2% improving the investors' risk appetite to buy stocks selling the low yielding currencies such as the greenback and the Japanese yen. Dow close last week above 9500 and its future is trading right now above this level at 9520.

The single currency is still finding support from a series of better than expected data has started 2 week ago with the release of EU GDP of the second quarter which came at just -.1% q/q and -4.6%y/y and it was expected to be -.6% q/q and -5.1% and it has continued with the uprising release of the germane ZEW of August which was expected to go up to 45 from 39.5 in July it has surprised the market this morning by rising to 56.1 this month and also August ZEW survey of the EU which shows the economic sentiment has gone up to 54.1 from 39.5 in July and it was expected to be just 43 and by the end of last week we have had better than expected flash figures of EU PMI Manufacturing of this month coming up to 47.9 from 46.3 in July and it was expected to improve to just 47.5 and also the PMI Services figure came up to 50.2 from 47 and it was expected to be 48.1 and also today we have seen an increasing of the EU industrial new orders in June by 3.1% m/m and they were expected to be up by 1.7%.

By God's will, we are not waiting for important data today from US but it is important to watch tomorrow August US consumer confidence release which is expected to be 48 and it was just 46.6 in July. The market focusing on the slow pace of consuming in US in the recent 2 month has affected negatively on the US stocks as this current slow consuming pace is looking not enough to the investors to believe in the recovery which can store confidence again in the US economy.

Best wishes

FX Consultant
Walid Salah El Din

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