Muted Forex Response to Dramatic Fundamental Events

Despite all the recent drama, the Forex market has been relatively quiet today with many of the major currencies just trading a tight range. Default fears about the Dubai World debt seem to have almost totally receded.

There are major Forex event risks tomorrow with declines expected for both the US ISM Manufacturing figure and US pending homes sales.

The Euro displayed little response to the posting of a 0.6% increase in its Consumer Price Index. This positive performance has been mainly attributed to the rise in oil prices as opposed to a demand for consumer goods.

So, is all fixed as the day reaches its end or as we watching the equivalent of the tide rushing out in the wake of a tsunami. Only time will tell. Who mentioned Greece?