OPENING COMMENT
The pullback in risk appetite over the past 24 hours along with comments from China that the USD has been a keen influence on global recovery hopes and that the US government should bear this in mind when setting policy, have helped to find some much needed bids for the beaten down buck. However, it is still Sterling in the spotlight, with the single currency under an intense attack against all currencies following the very downbeat comments from Governor King, who also welcomed a weaker sterling to help rebalance the economy. A draft of the G20 communique is doing the rounds with the Group seemingly agreeing to avoid any premature withdrawal of stimulus, until a durable recovery is secured. At that time, the Group also agrees that the withdrawal will be a coordinated one. Looking ahead to the European session, it is all second tier data with the only release worth some attention, coming in the form of Swiss KOF due at 9:30GMT.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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