April ISM Manufacturing index came better than expected at 40.1 feeding the believe which is containing the current market sentiment that the contraction is at a slower pace currently saving last week gains of the equity market and the optimism for the beginning of this week which carry many important data like the release of the US ISM non-manufacturing index and the US labor report of April by the end of it and the market is looking for a slower pace of laying off too as the unemployment can undermine the consuming sentiment which have improved recently as we have seen US April US Consumer Confidence index which was expected to go up to 29.5 from 26 in March coming better than expected at 39.2 following the preliminary release of April University of Michigan Confidence index which came better than the market expectations of 58.5 at 61.9 and the final reading came higher at 65.1 ensuring this improving.

The european stock markets could keep its gains before today holidays while the US equity market has closed in the red tritorry giving back its previous gains which drived the dow during yesterday session to 9300 before closing at 8168 losing 21 points. The Fed declaring that the pace of the contraction is getting slower has been confirmed by Chicago PMI index which came up to 40.1 in April from 31.4 in March and By God's Will, we wait today for the release of US ISM manfacturing index of April which is expected to improve to 38 from 36.3 in March. A number above 50 means a contraction and below 50 means a contraction.

The Fed has kept the interest rate unchanged reffering to the slower pace of contraxction currently in their US assessment with no new taken easing or stimulation steps of their adopted quantitive easing policy. The greenback has found some support from this fed repeating of its pledges to buy 1.25 trillion of the MBS and 300 billion of long term treasuries notes with no more announcement of injecting more funds. These worries were weighing on the  greenback which was actually suffering from the stocks market appreciation as the current stong return of the risk apitite to the investors who have seen these current low prices are attractive for a recovery may start later this year in spite of the dispointing QI US GDP figure which came lower than the market expectations of -5% y/y at -6.1%.

The single currency could get back some of its lost ground versus the greenback getting above 1.3 again after the release of the germane CPI which came slightly better than expected at .7% y/y and unchanged from March monthly and the market was waiting for .8%y/y  and .1%m/m. The single currency was suffering recently from the weak inflation rates in the EU which can open the door to the ECB to cut the key interest rate in the eurozone further and taking untraditional easing stimulation steps to spur the current cooled invetments.