The single currency is still trying to get out of the negative impact of the Greece huge unsustainable debts worries which rose later this increasing the concerns about the future of the financial situation in Euro zone in the face of such problems. The single currency could not come over 1.48 again versus the greenback since the news about the rising of Greece debt to 300B Euros, in spite of the stocks rising which weighed on the greenback in the last session as the risk appetite has increased again pushed by new optimistic growth data from China and the confirmation of no downgrading of US and UK creditability rating. 

The positive effect of the US labor report release of November is still containing the current market sentiment increasing the speculations of a closer end of the US quantitive easing policy of the fed although Ben Bernenke's reference earlier this week that there is still a need for waiting for this halting recovery, the greenback could keep its gains across the broad except the Japanese yen which was supported by the stocks market loses in the beginning of this week as greenback has had  a better interest rate differential outlook right now comparing to the yen which attracts the interest of the investors carry trades transactions to be the most hurt currency after these data which have interpreted to a nearer coming Fed's tightening action than what was discounting as the Fed's governors have repeated in several times that there is no change of the Fed's easing policy without a crucial change in the labor market.

The greenback could have a technical momentum to stress further on the energy prices and the gold as well this week. The gold lost more than 50$ directly after the data as a Fed's tightening action can cap the inflation pressure upside risks from another side which can have further attention from the Fed in the future which can underpin the greenback by the fed's Next meeting next Wednesday.

God Willing, it is important to wait today for the release of US November retail sales which are expected to be up monthly by .6% and by .4% excluding the auto sales and we have also next Friday the preliminary release if US UN Michigan University consuming sentiment survey of December which is forecasted to be 68.5 from 67.4 in November.

Best wishes


FX Consultant

Walid Salah El Din
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