The Single currency could find support versus the greenback to rise to 1.2976 until now with the release of Germane CPI flash reading of May which indicated rising of the inflation pressure over the consuming level more than what was expected to repeat of EU M3 has told too this morning by rising also more than expected increasing the possibility of pushing up the inflation in EU.

These worries about the inflation up side risks in EU have come also with rising of the germane unemployment change of May by 21k which is the biggest amount since Jan 2012 and also lowering of OECD forecast of EU GDP to be down this year by 0.6% from 0.1% it has foreseen in January.

The market participants are still trying to translate the stimulating wave which has been sent out from BOJ last week by showing extending possibility of its JGB maturities holding with doubling the amount of it has of them by the end of 2014 by buying what are from 60 to 70 trillion yen yearly.

You can see now the yield curve of JGB 10 years up to 0.53 from 0.45% at the time of these decisions and what’s below 0.5% before them and this can be read by different ways

The first, it is tending to taking risks selling the bonds looking for unlock of the safe haven positions while this wave is causing rising of the risk appetite even in some emerging markets.

The risk appetite is still depressed by the weak US non-farm payrolls of March which have shown adding new 88k jobs while they were expected to be to 200k from 236 in February have been revised up to 268k. the US major indexes are still in the red territory while the greenback is still under pressure versus the single currency which could have a place again above 1.30 after yesterday rising following Draghi’s comments which ensured that there is no way to use Cyprus rescue plan as a template in other euro zone countries.

The FOMC minutes of its meeting on last 30^th Jan came to show worries about the Fed’s QE outlook as what have been shown in the recent report.

The FOMC’s members have given ideas but most of them were towards decreasing of the current QE plans not increasing them putting pressure on the current market sentiment causing loses in the equities markets and pushing the USD up on the risk aversion and on increasing of the closer than later expectations of ending or pausing the QE pumping liquidity of it.