The Advisor Weblog

Posted: 21 Jan 2011 12:42 AM PST

Hi everyone and welcome back! Dollar resumed its bearish trend against European rivals, particularly against Euro that rose to a fresh 2 months high at 1.3557. These days, pair has failure to hold gains above the 1.35 mark, yet seems now is ready to extend its rally: successful bond sales from Portugal and Spain, and expectations of a strengthened euro zone rescue fund, along with rising inflation expectations, are lending the euro the required support.

Pound continues struggling to stabilize above 1.6000, although the downside is pretty well defended by the 38.2% retracement of the last daily fall at 1.3800; far below 1.60, investors will be waiting for UK data to be release in a few hours, before taking decisions there.

Here is the link for today's calendar, we will be right back after news:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!