After a strong beginning of the greenback this week underpinned by loses in the equities markets, the greenback has started losing its upside momentum in the US Session giving back most of its earlier gains across the broad which had after the release of the US labor report of May which has shown losing of 345k jobs and these were lower than the markets forecasts of losing 525k. There was no clear direction in the equity market this week until now closing between 8760 and 8770 for the second day.

 The single currency could creep up above 1.40 after its suffering yesterday from the S&P downgrading of The Irish economy to negative on the credit crisis consequences. The single currency could make a bottom in the beginning of the week versus the greenback at 1.38 while it was trading by the US labor data last Friday at 1.42 before joining the gains of the equities market right directly after the release and giving back the lead to the greenback to drive it down to close below 1.4 support which helped the greenback technically to record this level.

After a strong beginning of the greenback this week underpinned by loses in the equities markets, the greenback has started losing its upside momentum today giving back most of its earlier gains across the broad after the release of the US labor report of May which has shown losing of 345k jobs and these were lower than the markets forecasts of losing 525k.

The single currency could creep up above 1.40 after its suffering yesterday from the S&P downgrading of The Irish economy to negative on the credit crisis consequences. The single currency could make a bottom yesterday versus the greenback at 1.38 while it was trading by the US labor data last Friday at 1.42 before joining the gains of the equities market right directly after the release and giving back the lead to the greenback to drive it down to close below 1.4 support which helped the greenback technically to record this level.

The greenback has been supported across the broad by the end of the last week after the release of May US non-farm payroll which has shown a loss of 345k jobs which are lower than the market consensus of 525k. The labor data show that the recession pressure has got down recently and the recovery is aggregating. The market believes is this recovery have increased recently after the release of US Consumers confidence of May which increased to 54.9 and these new labor data came to ensure these believes again. The US stocks indexes future have increased strongly directly after the data and the Dow has opened above 8800 gaining more than 100 before exposing to the profit taken with the beginning of the US session directed it to the red territory before getting back some of its lost gains to close at 8763 up by just 12 points. The greenback has suffered from these strong gains in the beginning before making its strong rally across the broad.

After Ben Bernenke's announcement about the gradual recovery last Wednesday, the investors encouraged to take profit and reevaluate the current situation pushing the equities markets lower and the greenback up again driving Dow down to close at 7666 but yesterday Dow could find support from the market optimism of a recovery can come later this year pushing the financial sector stocks up and Dow to close at 8750.

The cable was underpinned after the release of UK Halifax house prices index which came up monthly by 2.6% from a decline in April by 1.8% but the cable came under pressure again after the BOE decision to keep the interest rate unchanged at its historical low at .5% keeping its quantitive easing plans of buying 125b pound of UK bonds affording the required funds to stimulate the current struggling economy.