Main Overnight Forex Events

Yesterday's positive US economic data boosted equities and weighed on both the US dollar and Japanese yen, despite tight trading ranges across the majors.

Tthe Conference Board's leading economic index rose by 0.6 percent resulting from improvements in the average workweek, jobless claims, stock prices, and the interest rate spread.

The Federal Reserve Bank of Philadelphia's manufacturing index unexpectedly surged to 4.2 in August from -7.5 indicating the first increase in business activity since 2008.

However, 2nd tier US data was weak. Initial jobless claims rose by 15,000 during the week ending August 15 up to 576,000.

Continuing claims rose by 2,000 during the week ending August 8 to 6,241,000.

US mortgage delinquencies rose to 9.24 percent in Q2 from 9.12 percent, the highest since recordkeeping began in 1972.

Overnight, the Euro surged higher after German PMI figures jumped to 54.1 from 48.1 against forecasts of 48.6.

French manufacturing PMI was also in expansion territory at 50.2. The composite Euro-Zone PMI rose to 50.0 indicating that the region is on the brink of expansion.

The surge in the EURO and its associated increasing optimism has dragged the British pound higher after it reached as low as1.6433 during Asian trading on waning risk appetite.

The dollar reversed earlier gains overnightas it come under pressure
after the realease of the strong European data which is indicating that the U.S. will be the first to emerge from the recession.