The Japanese yen, known as the safest bet in forex markets during times of uncertainty, profited today from negative releases in both Europe and North America, allowing the Asian refuge currency to post the sharpest gains versus currencies tied to growth.

The trading session started today with new pessimistic figures in Europe, as an important business confidence report published in Germany showed the first slump in this publication for the first time since the EU started to emerge from the worst recession since its foundation, allowing the yen to gain not only versus the euro, but also versus other regional currencies in Scandinavia and Eastern Europe. U.S. reports published today also brought more pessimism to global trading, as consumer confidence ended a consecutive series of advances and fell much below forecasts, providing support for the yen’s winning streak to be extended.

As it becomes clearer now, 2010 is not going to be a year of a sharp economic rebounds around the world as previously expected, and as bad events continue to follow, it is possible that important wealthy nations will experience slow growth and even an extended recession, if the financial situation doesn’t improve on a global scale.

CAD/JPY fell to 85.38 from yesterday’s rate of 87.38. EUR/JPY also fell, to 121.86 from 123.89.

The U.S. dollar profited last week from a wave of uncertainty that brought investors to opt for safer bets in foreign-exchange markets, and this trend might last for a longer period mainly versus European currencies as the economic outlook in the region is far from optimistic.

The dollar started February touching new record highs in 2010 versus the euro and gaining sharply versus the pound, as the U.S. economic is providing better figures than other economic regions around the world, and traders might witness a longer rally for the U.S. dollar as China new bank loans restrictions is likely to show reports impacted by the these measures in the following months. The euro is one of the currencies which is losing the most versus the greenback as its already well known budget deficit issue among some Eurozone member countries is making investors to avoid the region for the moment, making the dollar to touch the highest level in 6 months versus the European single currency.

Reports in the U.S. have been considerably better than in countries like the U.K., Australia and emerging markets, and this, combined with lack of confidence regarding the global economic recovery so expected in 2009 for the current year is making the dollar to rank among the best bets in forex markets this month.

EUR/USD is at 1.3639 as of 04:39 GMT from an opening rate of 1.3655. GBP/USD traded at 1.5602 from 1.5590.

The pound was of the few currencies which couldn’t profit from a higher risk appetite today versus the dollar and the yen as another real estate report declined attractiveness for Britain’s currency, which started the week falling versus multiple currencies.

After two reports published today in London showed a decline on house prices and mortgage approvals in the British real estate market, the pound slid versus a stronger euro, an attractive Swedish krona that benefited from a national manufacturing report beating forecasts, and also versus commodity linked currencies as demand metals and the crude oil rose today.

EUR/GBP traded at 0.8725 as of 23:09 GMT from an opening rate yesterday of 0.8692.

he Swiss currency finally felt the central bankers pressure and declined considerably versus most of its main trading partners' currencies, on speculations that measures will be taken by the financial authorities to avoid the franc to gain.

The Swiss franc dropped even versus the European single currency as some of the bloc’s members are providing negative economic data, evidencing that the Swiss National Bank pressure to halt the franc’s rally is taking effect. The pound was one of the biggest winners versus the franc as the U.K.’s inflation rose beyond forecasts.

GBP/CHF traded at 1.6886 as of 22:31 GMT from a previous rate 1.6737 yesterday.

The U.K. currency extended Friday's gains versus the U.S. dollar today as global optimism helped speculations that an economic recovery in the U.K. will make its currency more attractive in foreign-exchange markets.

A business report published today by a private company in the U.K. indicated that confidence regarding economic conditions has improved substantially in an annual comparison, helping the pound to post another day of gains versus the greenback after a Chinese trading report suggested that the global economic recovery expected for 2010 is so far being confirmed, as both exports and imports climbed in China.

GBP/USD traded at 1.6111 as of 23:08 GMT from 1.6069 when markets opened yesterday.

A report published today indicating fewer-than-expected new jobless claims applications last week allowed the dollar to gain versus the euro and several other currencies as improving employment data is a key-evidence indicating the U.S. economic recovery expected for 2010.

A positive sentiment towards the U.S. employment conditions provided support for the greenback to touch the highest level in four months versus the yen as traders expect a payrolls report tomorrow to show a decrease in job losses, after today’s weekly jobless claims report also came with positive figures. The greenback also pared losses versus commodity linked currencies like the Aussie and the Canadian dollar, which posted several days of advance as the crude oil rates rose on expectations demand will rise in 2010, favoring also riskier assets during this week so far.

Analysts consider the employment data as extremely relevant for indicating the U.S. economic health, as even if other data may indicate a recovery, normally bad employment figures evidence problems in a country’s economic outlook. Tomorrow payrolls report will be essential to determine the dollar’s trends in the short term.

EUR/USD declined to 1.4317 as of 18:16 GMT from a previous intraday rate of 1.4397. AUD/USD traded at 0.9177 after trading as high as 0.9253.

The euro may extend last month's decline versus emerging markets and commodity linked currencies as the economic recovery expected for the beginning of 2010 may rise appeal for riskier assets, damping demand for the European single currency in foreign-exchange markets.

After currencies like the South African rand and the Norwegian krone benefited from a rise in demand for energetic and metallic commodities, the attractiveness for the European common currency suffered another strike, as some of its country members are struggling to adjust their current accounts and stabilize their banking systems. A less appealing euro combined with positive forecasts for a global recovery in 2010 will cause Asian stock markets to rally, rising also demand for raw materials as manufacturing production accelerates worldwide, providing support for the Canadian and the Australian dollar to beat the euro in the short-mid term, as well as emerging countries currencies like the Brazilian real and the Chilean peso, which ranked in 2009 among the best performers versus the euro.

Even if optimism is strong, its not guaranteed that such trends will last for a longer period, as economic recovery pace and the drivers behind it are not well defined and structure, allowing room for the euro to rebound if the current scenario changes slightly.

The U.S. dollar reached the highest rate in more than 2 months as a speculations regarding a series of reports to be released today indicate that favorable numbers will help the Federal Reserve to lift stimulus measures raising attractiveness for assets in the world's wealthiest nation.

Speculations regarding interest rates continue to fuel a dollar rally that made it climb from the lowest rate in 15 months two weeks ago to the highest price in more than two months, as positive economic data in the United States would provide support for the Federal Reserve to raise borrowing costs in the country during the following months, from a current level near zero. The Australian dollar fell against its U.S. counterpart as policy makers are less hawkish to continue a series of rate hikes that set the Aussie to rank among the top 3 best currencies performers in 2009.

The dollar is likely to gain versus the euro and higher-yielding options as long as optimism regarding interest rates continues strong among traders. If economic stimulus are lifted by the Fed as expected, if will fuel even further a dollar rally versus most of the main traded currencies.

EUR/USD traded at 1.4533 as of 12:58 GMT from a previous rate of 1.4651 yesterday. AUD/USD dropped to 0.9060 from 0.9172 twelve hours ago.

The Japanese yen continued its decline against the dollar and the euro for the second day today as the unpleasant economic conditions in Japan make their currency less attractive to the buyers.

The technical reasons are also pressing on the yen as the Japanese currency was growing strong during last weeks. While the other major economies show improved macroeconomic conditions (like U.S. and Australia), the indicators coming out of Japan aren't very optimistic and suggest a further decline. The silent interventions by the Bank of Japan may also be taking an effect in yen’s current depreciation.

Consumer confidence survey showed a monthly decline from 40.8 to 39.9 in Japan today. Machinery orders also fell by 4.5% in October. These reports were released on the background of the negative revisions of the Q3 GDP gain. Meanwhile, investors expect the positive fundamental releases from the U.S. consumer and export/import sectors today.

Many analysts believe that the current growth is the rally spurred by the decrease of the risk-aversion among the traders and the possible return of the carry trade. In fact, the situation with the Dubai debt improved yesterday, but still there are fears among the market participants that the whole Gulf region may continue to suffer from the bad debt problem.

USD/JPY went up from 88.30 to 88.89 today after rising from 87.98 yesterday. EUR/JPY rose from 130.07 to 131.06 today, while AUD/JPY rate increased from 80.94 to 81.40.

The Japanese currency declined versus most of the 16 main traded currencies after speculations rose that Japanese officials are ready to intervene on the current yen’s level, as it would be an obstacle for the Japanese economic recovery, decreasing competitiveness for the nation’s exports.

After the Japanese newspaper Nikkei affirmed that Japan’s Prime Minister Yukio Hatoyama made statements against the yen’s current levels, the yen immediately dropped versus virtually all major currencies, since the current rally hasn’t been a point of concern among Japanese officials so far, creating an exodus of capital from the Asian nation as traders attempt to protect their portfolio from future losses if real measures to contain the yen’s appreciation will be taken. The yen has been subjected to extreme volatility as the nation’s central bank did not interfere on its fluctuations, caused mostly by shifts in risk levels among traders lately. The greenback gained versus the yen as stocks in the U.S. declined, forcing risk aversion up in North American financial markets.

Analysts agree that the yen is not likely only to fall if interventions follow, but its volatility rate is probably going to narrow its width, as risk levels have been playing a major role in the yen’s fluctuations. The next weeks will be decisive for the Japanese currency’s outlook, but the Bank of Japan is likely to hold itself for a while to analyze the impact of speculations.

CHF/JPY traded at 87.25 as of 21:42 GMT from a previous rate of 86.72 in the intraday. USD/JPY rose to 87.41 from 86.67.

Risk aversion rose today favoring the Japanese currency after a U.S. gross domestic product report indicated a slow down in the quarterly growth, creating speculations that the nation’s recovery will take longer than expected, attracting investors to safer bets.

The U.S. quarterly GDP report indicated a growth of 2.8 percent from a previous report that showed a 3.5 percent increase, evidencing that the economic recovery in the world’s wealthiest nation will not be so fast and consistent as many suggested, forcing investors to protect their portfolios opting for the relative safety of the yen.

USD/JPY traded at 88.50 as of 17:19 GMT from a previous rate of 89.10 in the intraday.

The Swiss currency lost against most of the 16 main traded currencies as speculations suggests that the country is likely to tighten its financial regulations, decreasing attractiveness for the franc.

The franc used to be, together with the U.S. dollar and the yen, a currency considered as a top refuge, but today, after Swiss National Bank officials statements that regulations may be tightened in the country emerged, due to the financial sector’s dimensions in the country, the franc fell versus most of the main currencies.

USD/CHF traded at 1.0133 as of 20:21 GMT from 1.0102 yesterday.

The U.S. dollar started this week losing versus its Canadian counterpart and the euro as the wealthiest economy in Asia posted an unexpected quarterly growth, signaling traders that economic conditions in Asia are improving driving capital flows towards high-yielding options.

The U.S. currency had a poor performance this Monday after the Japanese economy posted a preliminary gross domestic product growth of 1.2 percent for this year’s third quarter, a much higher level than the 0.7 percent forecast, creating a risk appetite scenario in Asia that favored higher-yielding currencies like the Aussie and kiwi dollar, and set the attractiveness for the relative profile of the U.S. dollar down, as Japan was being one of the slowest rebounding economies from the global slump, fact which changed today providing support for Japanese stocks to rally strongly. The yen also gained versus the dollar as investors are repatriating assets to the Asian nation.

The dollar started another week fliriting with the $1.50 level versus the euro, and its likely that this level will once again be surpassed as risk appetite started strong once again this Monday, according to analysts. The global economy still has room for sharp rebounds and it affects traders sentiment in a way that they will look for yield, and that’s a dollar-negative factor which is likely to be present for the next months.

EUR/USD traded at 1.4974 as of 15:21 GMT from 1.4946 when markets opened yesterday. USD/JPY traded at 89.40 from 89.60.

The Japanese currency ranked among the best performers in currency markets after several days of losses as stocks declined worldwide, attracting traders to the safety provided by yen-priced assets, and favoring also safer bets in financial markets globally.

The South Korean won was one of the biggest losers versus the yen after climbing sharply due to a report showing a significant quarterly growth for the Asian emergent nation, in a movement that can be understood as a correction by traders. One of the biggest winners today, but still losing against the Japanese currency was the Australian dollar, that benefited from side effects of a Chinese official statement suggesting that industrial production is growing massively in the country, which is good for the South Pacific nation since Australia is a major provider of commodities to China. The Swedish krona also lost significantly versus the yen as the country is still suffering from central bank statements last week that affirmed that interest rates will remain low until next year.

Most analysts concord that financial markets are having a moment of correction this week after stocks and higher-yielding currencies touched the highest levels in 2009 last week. Even if this Tuesday is producing rather negative numbers, most of traders are still expecting gains in riskier assets towards the end of the year.

EUR/JPY traded at 136.47 as of 14:00 GMT from a previous rate of 138.49 in the intraday. GBP/JPY traded near stability at 150.35.

The U.S. dollar rose after extending once again its record high for 2009 after China missed slightly its quarterly growth forecasts, and economic stimulus in the country will continue for a certain amount of time, suggesting the country is not so recovered as previous expected.

The euro fell below $1.50 against the dollar after touching the highest rates in 14 months in a movement that can be interpreted as corrective, since stocks fell globally, helping the dollar to gain the most versus commodity linked currencies like its Australian counterpart, and also emergent market options in Asia like the South Korean won, and in Latin America like the Brazilian real. The dollar also gained against the Swedish krona, after the Riksbank, Sweden’s central financial institution maintained interested rates at an all time record low, showing that the Nordic nation still needs the support from the government to expand its faltering economy.

Analysts suggest that today’s movement was mainly fueled by a risk averse day in stocks, as the dollar declined several days in a row, today corrections are profit taking are being made by some investors, leaving a breather for the greenback. It is unlikely that the dollar will revert its losing trend on the mid-term, as the Federal Reserve has expressed no concerns regarding a weaker currency.

EUR/USD traded at 1.4989 as of 11:59 GMT after touching 1.5046 yesterday. AUD/USD traded at 0.9229 from 0.9328.

The U.S. currency finally posted gains versus most of 16 main traded currencies as some investors suggested that the recovery in the North American economy is not compatible with such losses in currency markets, providing support for the greenback to pare gains of most emergent market currencies which were climbing these week.

Several events changed market’s trends today after the European Central Bank Jean-Claude Trichet affirmed that U.S. government should support the strength of its currency, declining attractiveness for the euro, which also posted intense losses versus the pound this week. The U.S. dollar also gained on speculations regarding industrial production in the country, which is likely to increase further from the past month, a significant evidence that economic conditions are improving in the wealthiest country in the world. One of the few currencies that managed to control the dollar’s gains today was the pound, as optimism was renewed in the country after the central bank suggested that its quantitative easing problem will be suspended.

Mixed information is influencing on the volatility of the U.S. dollar, firstly the Federal Reserve affirmed that the fluctuations of the currency are acceptable, but now the European Central Bank starts to show concerns regarding a weakened dollar, causing a nebulous scenario for the greenback short term future.

EUR/USD traded at 1.4879 as of 11:40 GMT from a previous rate of 1.4962 hours earlier. USD/CAD traded at 1.0394 from 1.0312 in the intraday.

The British currency is having another dark week losing versus its main rivals and also most of currencies traded in foreign-exchange markets as speculations that the national central bank may extend its asset-purchase program to revive the nation’s economy decreased appeal for the pound.

After a report posted today showing that inflation in the U.K. dropped to the lowest level in 5 years, speculations rose that the Bank of England will eventually have to expand its asset-purchase program, since extremely low inflation levels or deflation are a typical aspect of a recession, economic condition which has been punishing Great Britain since last year when the credit crunch struck the world. The Bank of England had affirmed previously that the current stimulus program would not be brought further, but investors are suspicious since economic conditions in the British Isles continue to deteriorate, and measures are to be expected from policy makers in order to revive the nation’s economy.

The sentiment towards the British currency is extremely negative, since other opportunities are more attractive for the moment in currency markets according to JR Crooks, Director of Research in Black Swan Capital:

Basically, low yields for the foreseeable future, plus greater potential for growth in other parts of the world are a bad combo for the pound.

The forecast in the short-term for the pound is likely to remain negative, unless appeal for the U.K.’s currency rises due to a shift in domestic or international financial scenario.

EUR/GBP touched 0.9404 as of 11:42 GMT from a previous rate of 0.9331 yesterday. GBP/USD traded near neutrality at 1.5801.

The yen managed to climb versus several main traded currencies and hit the highest level versus the U.S. dollar after Japanese policy makers affirmed that a strong currency will not impact the country’s economy negatively.

The Japanese currency gained confidence today climbing versus the greenback and the euro after the nation’s Finance Minister Hirohisa Fujii affirmed that the yen is currently fluctuating withing comfortable parameters, helping investors to purchase yen-price assets as these statements could be interpreted as a negative sign from Bank of Japan to take measures to stop the yen’s rally. The yen gained mostly versus the greenback, currency which has been affect by a negative sentiment, making it to lose versus most of the 16 main trading currencies, providing support for the yen to touch a nine-month high versus the U.S. dollar, but also high-yielding currencies like the Australian dollar and emergent market options like the Brazilian real hit record highs versus the dollar this week.

Fujii’s statement was perceived with optimism by both Japanese and international traders, since before this week, speculations suggested that an eventual rally for the Japanese currency would be halted by measures coming from the Bank of Japan. Today’s declarations functioned as a green light for the yen to climb further versus the U.S. dollar, and these movements tend to continue during the next week.

USD/JPY traded at 88.18 as of 10:18 GMT from 89.07 in the intraday comparison.

The dollar started this week losing versus the euro and the pound after speculations that Group of 7 central bankers would provide statements supporting the dollar were not confirmed, erasing last week gains and setting the dollar to a bearish scenario again.

Last week was marked by a good U.S. dollar performance as a G-7 meeting was expect to stress the importance of a strong greenback, as it could provide solid competitiveness for exporters around the world, specially in the Eurozone, where they have been struggling to find costumers due to the current euro’s levels. Group of 7 policy makers did not signaled that they support a strong dollar, indicating that natural market regulations are more welcome than disorderly swings in currency markets, setting the U.S. currency back to a bearish scenario, where the Australian dollar also gained significantly this Monday.

The shift in sentiment towards the dollar may set the U.S. currency to a new losing streak towards record lows according to some analysts, but even if the scenario is not the most optimistic for the greenback, other currencies, with a few exceptions, are still struggling to find their way out of recession, so the dollar bearish scenario may not impact the currency as much as it would in normal conditions, since most parts of the world are still facing a recession period.

EUR/USD traded at 1.4626 as of 11:02 GMT from an opening rate of 1.4595 yesterday. AUD/USD traded at 0.8745 from 0.8670.

The U.S. currency rebounded this week from a twelve-month low versus the euro and several other currencies as concerns regarding the global economic situations reappeared today, increasing risk aversion and consequently helping the greenback to gain in foreign-exchange markets.

Toyoo Gyohten, a former currency official with influence in the Japanese government affirmed today that the U.S. dollar should remain as the global reserve currency, helping the dollar to gain in a pessimistic scenario that increased risk aversion, after Russia cut its national interest rates to spur the country’s economy, creating speculations that the situation is still far from optimal in the biggest European country. The dollar gained versus most of the main currencies today, specially the euro, but it failed to contain the Australian dollar rally, which is being fueled by speculations regarding interest rate hikes which could occur before the end of the year, suggesting that the South Pacific nation is one of the most resilient from the global slump.

A great part of the trading community is already waiting for rate hikes and placing their bets according to that, but today, Russia surprised the world cutting interest rates, bringing back uncertainties and risk aversion, which is favorable for the greenback. There is also a sentiment that the dollar could be undervalued, and we may witness a rally for the greenback in the short-term as a correction for this disparities.

EUR/USD traded at 1.4552 as of 11:03 GMT from a previous rate of 1.4651 yesterday. USD/JPY traded at 89.93 after touching 88.47 yesterday.

After a report indicating the highest unemployment rate in more than a decade in the United Kingdom, the pound lost versus most of the 16 main traded currencies, as the British economy has been one of the most weakened in the region, shunning investors from assets in Great Britain.

Even if the global economy has been showing sings of improvement in the U.K. and globally, unemployment rates are one of the most affected figures by the new adjustments of the economy, breaking records in European Union, Japan, as well as in the U.K., which posted the highest unemployment rate since 1995 at 7.9 percent of the workforce, raising concerns regarding the socioeconomic future in the United Kingdom. The British pound has been one of the few currencies that did not gained significantly versus the weakened U.S. dollar, which is losing appeal among traders by the day, as investors seek for yield in stock markets and emergent countries.

Yesterday’s Bank of England declarations regarding further measures to adjusts national accounts combined with today’s unemployment figures made the pound’s attractiveness to fall significantly, as several world economic regions like the South Pacific provide a much more confident scenario for traders to inject money, leaving the pound together with the U.S. dollar as the worse bets for this week in foreign-exchange markets.

GBP/USD traded at 1.6519 as of 11:18 GMT from a previous rate of 1.6598 yesterday. EUR/GBP traded at 0.8883 from 0.8820 in the intraday comparison.

The pound started the week losing versus most of major traded currencies around the world as speculations suggested that the crisis in the real estate sector will continue in 2010, decreasing attractiveness for the UK's currency in foreign exchange markets.

After Ernst & Young LLC's Item Club statements declaring that house prices in the UK will continue to decline next year, the sentiment towards the British currency was affected, making the pound to decline versus most of the 16 main traded currencies, as the real estate market crisis in the country was one of the main factors behind the biggest economic slump in the UK since the Second World War. The pound reached a one month high versus the U.S. dollar last week as optimism spread out in trading markets, but domestic complications once again affected UK's currency, which is failing to climb to pre-crisis levels, as stocks declined in London this morning, shunning investors from pound-priced assets.

Analysts remain cautious to state a recovery for the British currency, as domestic data remains rather negative, influencing traders sentiment towards the pound, suggesting that at least in the short-mid term UK's currency will still be not one of the best bets in foreign-exchange markets.

GBP/USD traded at 1.6543 as of 10:33 GMT from a previous rate of 1.6652 when markets opened. GBP/JPY fell to 150.14 from 150.56.

The pound climbed today versus most of the 6 main traded currencies as the situation starts to become more positive for the British economy, pushing stocks up in London and consequently attracting international inflows of capitals to the United Kingdom.

After U.K. manufacturing output had the highest climb in 18 months today in a report published by the Office for National Statistics, the pound rose sharply, gaining virtually against all 16 main traded currencies worldwide, rebounding from a rather weak performance last week, when a wave of pessimism still affected pound-priced assets attractiveness. Stocks in the U.K. rose to the highest level since October last year, when the credit crunch plunged the British Isles into a intense sequence of losses in multiple bearish market weeks. U.K. manufacturing went much beyond forecasts, which suggested a 0.3 percent increase for the past month, but the actual report indicated an amazing 0.9 jump, being this surprising figures the main vector to push the pound up today in foreign-exchange markets.

According to many analysts, the pound remains undervalued, still suffering the consequences of the credit crunch that caused the biggest crisis in the country since the Second World War, but if favorable news still follow, the pound may find support for a big uptrend in the following months.

Several reasons in Asia and speculations in the U.S. led the yen to extend its gains versus most of the 16 main traded currencies, as pessimism news often raise demand for safer assets, being the yen one of the safest options which benefit from this phenomenon.

The yen is being traded at the highest rate in almost two months versus the euro as speculations suggest that the CIT Group Inc.’s financial situation is still deteriorating, bringing concerns back that the U.S. banking sector remains far from stabilization, attracting investors towards safety, mainly favoring the Japanese currency. Stocks also declined in Asia, mainly in Japan, indicating that expectations towards the world economic recovery have been unmet so far, as risk aversion is constantly climbing, damping demand for high-yielding assets as investors try to protect their portfolios.

Unless more solid evidences of a steady recovery start to appear in the main global economic regions, it is likely that the pattern for the yen will remain bullish, as the previous euphoria with the first positive reports after months of disastrous data start to fade. Concerns regarding the CIT Group reappeared this week after speculations that one of the most important banking conglomerates would file for bankruptcy emerged in June, rising risk aversion in foreign-exchange markets.

EUR/JPY traded at 131.82 as of 8:54 GMT from a previous rate of 133.50 in the intraday comparison. GBP/USD traded at 149.73 from 152.33.

The yen started this week climbing versus several higher-yielding currencies worldwide as Asian stocks declined today, spurring demand for the safety of the yen, which is also benefiting from a new elected party in Japan, renewing hopes for the nation’s socioeconomic future.

A new ruling party was elected this weekend in Japan leading speculators to believe that foreign investors will once again inject capital in the country, since the opposition Democratic Party of Japan brings new hopes for the country which posted last week the highest unemployment rate since the Second World War. Stocks in Asia declined sharply led by the Shanghai Composite Index which declined more than 6 percent, spurring demand for safety among traders and setting the Japanese currency to the highest rate versus the euro in more than a month.

Despite Japanese elections with the opposition party coming out as a winner, the yen’s rise is mostly due to risk aversion, according to analysts. Stocks and other high-yielding assets climbed substantially and the fundamentals are not as positive to provide a solid support for intense bullish days as those witnessed during the past two months. High volatility is still expected for the yen pairs as the future of most global economic regions remains very uncertain.

EUR/JPY traded at 132.90 as of 9:33 GMT from an opening rate this week of 133.71. AUD/JPY traded at 77.97 from 78.71.

The pound posted another day of losses versus most of the 16 main traded currencies as the economic situation in Great Britain remains behind most of the other main global economies, decreasing attractiveness for the British currency.

Today’s published data and tomorrow’s forecasts are once again impacting the pound which is posting the sixth consecutive day of losses versus the euro, since U.K.’s economic outlook is currently far more negative than the Eurozone’s perspectives. Today, the German Ifo business climate came positive beyond expectations, helping the euro to climb to the highest level in almost 3 months versus the British currency, and this trend is likely to follow as tomorrow, a U.K. house prices report is expected to bring rather disappointing numbers, which would weigh on the pound even further.

Currency specialists forecast a rather complicated short-term future for the U.K. currency as other economic regions throughout the world, like the South Pacific and North America, are providing more consistent signs of recovery than the pound country, which is certainly decreasing attractiveness for the British currency, causing a mass capital outflow from pound-priced assets towards more attractive bets throughout the financial world. The pound is likely to remain bearish, until more optimistic reports start to appear in the United Kingdom.

EUR/GBP climbed to 0.8783 as of 11:02 GMT from yesterday’s rate of 0.8728. GBP/USD traded at 1.6279 from 1.6390.

Germany and France posted favorable reports today indicating that the wealthiest countries in the Eurozone may be finding its way out of recession, evidence which helped the euro to gain versus several currencies towards the end of this week’s session.

After surprising economists worldwide several days ago when Germany and France posted an unexpected growth for the second quarter, today, the strongest economies in the Eurozone bloc posted a rise in manufacturing and services industries, once again going beyond estimations and bringing optimism suggesting that the current recession in the region may be having its final days. The PMI numbers were not sufficient to make the euro to rally versus the yen, since China affirmed that it may restrict capital requirements for domestic banks, causing an instant negative reaction in Asian stocks, which is a yen positive factor.

Analysts evaluate the current market reaction to European PMI numbers as a short-term market impulse, even though the data provided are solid and indeed an evidence of economic improvements, mainly in Germany, while France performed less positively in these reports. Germany is the Eurozone’s economic heart, and when the country finds its way out of recession the Euro is like to be bullish.

EUR/USD traded at 1.4303 as of 9:55 GMT from a previous rate of 1.4237 in the intraday comparison. EUR/JPY traded near neutrality from yesterday’s rate at 134.12.

After rallying to a 10-month high versus the dollar two weeks ago, the pound is declining severely versus most of the main traded currencies, as the real estate scenario deteriorates in the United Kingdom, shunning investors from pound-priced assets.

The most reliable internet real estate portal in the U.K., Rightmove Plc, indicated that house prices in Britain declined 2.2 percent this month, after climbing 0.6 percent in July, a fact which immediately declined attractiveness for the pound, since the real estate sector in the U.K. was the main responsible to plunge the country in its worse recession since the Second World War. Stocks worldwide also declined, pushing investors to safer bets, making the Japanese yen and the U.S. dollar the biggest winners today versus the Great Britain pound, as reports indicate that economic conditions in Europe remain worse than in other areas like in South Pacific and Latin America.

Both international and domestic events are affecting the pound this week, and may plunge it to lower levels in the short term as risk aversion is growing worldwide, at the same time that the British economy is unable to show signs of solid recovery, which push traders naturally away from investing in the country.

GBP/USD traded at 1.6301 as of 11:14 GMT from an opening price of 1.6488 yesterday. EUR/GBP rose to 0.8626 from 0.8595.

The dollar, which rebounded since last Friday as economic reports did not reflect a favorable situation in Asia and Europe, declined slightly versus the euro today, before tomorrow’s Fed Meeting.

The Federal Reserve is due to meet to tomorrow and will probably declare that benchmark interest rates in the United States will remain low, affecting the greenback outlook today versus multiple main traded currencies, as low interest rates are always negative for investors to purchase assets in a country.

EUR/USD traded at 1.4222 as of 17:21 GMT from a previous rate of 1.4100 six hours earlier

The pound is gaining again versus the euro and the dollar as services industry grew and U.K manufacturing jump beyond expectations in July, pushing the pound to the highest level in 9 months.

The pound sterling may be climbing its way to pre-crisis levels as positive news for the British economy appeared this week after months of consecutive shrinking numbers and political crisis in the British Isles. Today the pound is trading at the highest level in 9 months versus the greenback and the highest in one month versus the euro, fueled by British reports this week that indicated an increase in U.K. manufacturing and services industry figures, helping the pound to widen the gap versus the euro and rebound versus most of the 16 most traded currencies, losing only to extremely high-yielding options, like the Brazilian real.

Analysts affirm that the economic recovery in the U.K. is proving to be happening faster than in other parts of the Europe, which is boosting demand for the pound, and raising attractiveness for equities markets in London. If positive news continue to come in the U.K. it is likely that a rebound pattern will be set for the pound, which is likely to gain mostly versus the greenback and yen, considered refuge currencies and unattractive for the current economic scenario.

GBP/USD traded at 1.7016 as of 11:11 GMT from 1.6953 in the intraday comparison, being the current, the highest rate since last December.