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Sterling gains over Dollar

The figure showed a pretty gloomy picture of the US economy and it is hoped that the stimulus plan the Obama is trying to get passed through will stem the tide.

The Japanese Yen was one of the only majors not to benefit from the weaker dollar as the risk appetite picked up from traders and many reversed their earlier Yen purchases which they had made for risk aversion.

Earlier in the day there has been uninspiring numbers from Germany and the UK with their respective Industrial production figures both coming in below market expectations.

This morning we have had German trade balance, import and export figures released none of which showed any great expectation of the German economy picking up in the near term and a rate cut by the ECB at next month’s meeting is a foregone conclusion it is now just a question of how much they lower rates.

In Australia this evening we have their business confidence figure and governor speaking but that will probably go pretty unnoticed as their main focus in Australia will be on the recent fire disaster that they are experiencing.