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DOLLAR: The Dollar has ground out a moderate gain this morning as prices are holding well above this week’s lows. While the market appears to be getting used to unresolved debt problems in Europe, attention will shift back to the US later on during today’s session. Post-meeting comments from the FOMC could erode a portion of the Dollar’s recent support, especially if the Fed points towards more accommodative US monetary policy during the near future. A private survey of US housing could also provide further direction for the Dollar if there are surprisingly positive results on a report that is expected to be softer but the market may ultimately be waiting to see the Fed’s outlook before letting the Dollar put together any substantial recovery. The Dollar may find resistance near the 80.50 level during today’s session, and it may be able to extend today’s rebound if the Fed meeting results do not erode market sentiment.

EURO: The March Euro failed to benefit from decent economic data out of Germany and has slid back below the 130.00 level this morning. The failure to finalize a Greek debt swap deal has become a serious impediment to any further recovery in the Euro, and that news has certainly kept risk concerns at elevated levels. If Euro zone nations start to have problems with the market taking down their debt at upcoming auctions, the March Euro could end up revisiting the mid-January lows again during the near future. The March Euro may find support near the 129.25 level today, and it will need some sense of resolution with peripheral EU debt problems in order to revive this month’s recovery.

YEN: The March Yen remains in a tailspin this morning, as prices have fallen to their lowest levels since mid-December. Last night’s Japanese Trade numbers confirmed market expectations of Japan’s first annual trade deficit in over three decades, which for their export-driven economy has underscored the sluggish conditions in Japan right now. Japanese authorities may be keeping their powder dry, with the market doing their job of weakening the Yen, but any intervention at this point would send prices back towards the late October lows in a hurry. The March Yen may find support at the 127.85 level today, and it should remain on the defensive during the balance of today’s session.

SWISS: The March Swiss has come under pressure this morning from Euro zone debt anxiety but may find support near the recent lows, as the market may be looking forward to a test of the 1.20 Swiss/Euro rate, that the Swiss National Bank has vowed to defend. While any breakthrough is unlikely, look for the Swiss to outperform the Euro, as long as Greek debt concerns weigh on market sentiment. The March Swiss may find support near the 107.00 level and it is likely to stay well below this week’s highs as long as Euro zone debt problems hold onto the market’s attention.

POUND: The March Pound is holding up fairly well considering the negative impact of today’s weak UK GDP number, as well as the reaction to the Bank of England meeting minutes that may be pointing towards fresh quantitative easing measures during the near future. If macro-economic sentiment can produce a rebound later on during the session, the March Pound could rally back into new high ground for this current rally. The March Pound may find resistance at the 156.00 level and may be on track to post a new 2012 high, if today’s intra-day recovery gains further momentum.

CANADIAN DOLLAR: The March Canadian has fallen well below Monday’s 21/2 month highs as yesterday’s Canadian Retail Sales numbers highlighted the lukewarm tone of recent economic data. If the March Canadian is to be more reliant on commodity and equity markets to extend this rally, any chance of a rebound today may have to wait until FOMC post-meeting comments are out of the way. The March Canadian may find support near the 98.25 level this morning and it may need to see a broad-market turnaround in order to retest this week’s highs.

TODAY’S MARKET IDEAS: The Dollar should find enough support from ongoing Euro zone anxiety to hold onto early gains but could fall back towards this week’s lows if the market receives post-FOMC meeting comments as a sign of easier US monetary policy in the near future. If there is a widespread improvement with broad-markets sentiment later in the session, the March Pound could rally up towards a new weekly high.

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DOLLAR: The Dollar remains in safe-haven mode this morning as overseas risk concerns continue to smolder. While there has been no “watershed” event that has reinforced Dollar support, a clear lack of confidence with Euro zone debt solutions has lifted prices back towards last week’s highs. US economic data this morning could ease concerns on this side of the Atlantic but market focus is likely to remain on the Euro zone. The most recent Commitment of Traders report indicated that non-Commercial traders were trimming their net-long Dollar position as of last Tuesday, even as the market was heading up into new high ground. The Dollar is likely to remain well supported at these levels unless there is a major improvement in macro-economic sentiment during the near future. The Dollar may find resistance near the 78.20 level this morning and is likely to gain ground as EU debt problems dominate the markets. The Commitments of Traders Futures and Options report as of November 8th for US Dollar showed Non-Commercial traders were net long 22,088 contracts, a decrease of 1,796 contracts. The Commercial traders were net short 25,431 contracts, a decrease of 1,368 contracts. The Non-reportable traders were net long 3,343 contracts, an increase of 428 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 25,431 contracts. This represents a decrease of 1,368 contracts in the net long position held by these traders.

EURO: The Dec Euro has been on the defensive this morning, unable to find benefit from well-received GDP numbers out of Germany and France. Ongoing EU debt problems continue to drag prices lower, as recent optimism with Italian and Greek government changes has evaporated quickly. The most recent Commitment of Traders report showed that non-Commercial traders were reducing their net-short Euro position as of last Tuesday, even as the market was sliding down to new lows for November. Unless there is some market confidence in an eventual resolution with these debt problems, the Dec Euro will have difficulty regaining these recent losses. The Dec Euro may find support near the 135.00 level, and could be one negative news headline away from posting a new low for this sell off. The Commitments of Traders Futures and Options report as of November 8th for Euro showed Non-Commercial traders were net short 48,250 contracts, a decrease of 6,280 contracts. The Commercial traders were net long 77,113 contracts, a decrease of 984 contracts. The Non-reportable traders were net short 28,863 contracts, an increase of 5,296 contracts. Non-Commercial and Non-reportable combined traders held a net short position of 77,113 contracts. This represents a decrease of only 984 contracts in the net short position held by these traders.

YEN: The December Yen made a sizable recovery from overnight losses, and is climbing back towards the recent highs this morning. There is clearly a flight to safety out of the Euro zone that is providing fuel for this rebound but the shadow of potential intervention will hang over the market as prices continue to climb higher. The December Yen may find resistance near the 130.15 level, and is likely to stay below Monday’s high for the move unless the EU debt situation starts to unravel later on today.

SWISS: The Dec Swiss has been in a tailspin this morning, with prices reaching their lowest levels since mid-October. A comment from a Swiss National Bank official that the Swiss Franc was “still very strong” has revived ideas that the current “peg” with the Euro may be raised to 1.25 or higher. The December Swiss may find support near the 109.00 level and will remain under pressure as long as the market feels that a “peg” change may be on the near-term horizon.

POUND: The Dec Pound finally made a downside breakout this morning, although prices have seen little follow-through to the downside. Today UK CPI numbers were weaker than expected, which may encourage the Bank of England to become more aggressive with their quantitative easing measures. The Dec Pound may find support near the 158.30 level, and may have trouble putting together a recovery unless the EU debt situation provides some signs of progress.

CANADIAN DOLLAR: The Dec Canadian has been pressured by weak commodity and equity markets, and has found little relief from sluggish Canadian economic data. Unless there is a turnaround in market sentiment, the Dec Canadian is likely to make new lows for this sell off. The Dec Canadian may find support near the 97.35 level today, and could see heavier losses if outside markets continue to deteriorate.

TODAY’S MARKET IDEAS: The Dollar should hold onto this morning’s gains through the balance of today’s session, although any improvement in market sentiment could bring this rally to a quick halt. If sentiment remains negative during the session, the Dec Swiss could extend today’s slide to a fresh low for the move.

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The stress level in global equity markets has picked up in early morning action, fueled by growing European debt concerns and a round of disappointing economic data pointing to a tough slog to come. Italian bond yields have rallied back above the 7.0% handle this morning and this morning’s Spanish Bill auction drew yields that were more than 1.0% above October levels and that auction also saw less participation than the prior offering. The higher yields highlight the growing concern that Euro zone leaders have in tackling their debt crisis, not to mention unsustainable debt service costs. Credit spreads in France are also on the rise from mounting fears that French banks hold a significant share of Italy’s 2 trillion in debt. Adding to the weakness this morning was a round of disappointing Euro zone economic data. While Q3 Euro zone GDP matched expectations, the more forward looking German ZEW sentiment gauge came in much weaker than expected and fell to levels not seen since the fall of 2008. This underscores the negative impact that election/debt proceedings in the region have had on investor psychology. Weak European trade early this morning has also pressured US shares, and that is expected to continue into this today’s active US economic data calendar. While the clock ticks on the US Super Committee debt-reduction talks, there appears to be a growing consensus that leaders may pass the buck under the guise of a more definitive change in tax policy. US economic data this morning includes October Producer Prices, October retail sales and September business inventories.

S&P 500: The December S&P 500 enters the early US trading hours off 2.7% from Monday’s high, struggling under the pressure of mounting European debt concerns. An increase in Italian, French, Spanish and Greek borrowing costs highlight the level of concern in the market. These concerns have taken Greek banks shares down by more than 7.0% this morning, hamstrung by disappointing GDP data and mounting concerns whether new leadership can fix the nation’s debt problem. The weak financial backdrop this morning is expected to exert added downside force on the US financial sector. The Commitments of Traders Futures and Options report as of November 8th for S&P 500 Stock Index showed non-commercial traders were net long 12,119 contracts, an increase of 7,692. Non-commercial and non-reportable traders combined held a net long position of 16,986 contracts, down 1,499 contracts on the week. This reflects a selling on strength mentality from speculators, and that is viewed as a negative short term force. After yesterday’s failed attempt to break through the upper end of the recent trading range, the December S&P 500 looks poised for a test of 1224.00, and then at the November low of 1208.00.

DOW: The December E-mini Dow established a lower low during the early morning hours, as it extended the downdraft from yesterday’s high to 220 points. While the index may have drafted a level of support from yesterday from gains in Boeing, Caterpillar and reports that Berkshire took on a more than 5.0% stake in IBM, this morning’s tone has shifted back to Europe. Dow Jones Index components Home Depot and Wal-Mart report their quarterly results prior to the Wall Street open, and that could shed further insight into the health of the US consumer. The Commitments of Traders Futures and Options report as of November 8th for Dow Jones Index $5 showed non-commercial traders were net long 5,712 contracts, a decrease of 1,696. Non-commercial and non-reportable traders combined held a net long position of 8,705 contracts, for a decrease of 2,580 in their net long positioning. This selling pressure took place as the index rallied more than 400 points and that is seen as a negative. The bear camp has control to start this morning, with support entering at 11,910 and then at last week’s low of 11,661.

NASDAQ: The December NASDAQ enters the US trading session with losses of more than 1.0%, pressured by renewed Euro zone debt concerns and fears that global growth could be slowing. Earnings late Monday from Urban Outfitters showed the company falling short of Q3 sales forecasts, and that seems to be offering an added negative this morning. The NASDAQ will be keeping a close watch on Amazon today, as the company begins shipping its $199 Fire designed to capture the lower end of the tablet market. Dell reports their quarterly results after the bell this afternoon and is expected to show a more than 4.0% increase in earnings compared to the year ago quarter. The Commitments of Traders Futures and Options report as of November 8th for NASDAQ Mini showed non-commercial traders were net long 45,021 contracts, a decrease of 9,200. Non-commercial and non-reportable traders combined held a net short position of 1,038 contracts. These traders have gone from a net long to a net short position. The early morning tone in the December NASDAQ is negative, with 200 day moving average support at 2290.50.

TODAY’S MARKET IDEAS: Disappointing German Sentiment readings, Spanish Bill sale and sluggish Euro zone periphery GDP readings fuel the bear earlier this morning. Escalating borrowing costs also reflect a negative vote of confidence on new leadership changes in Italy and Greece. Sentiment is quite negative to start this morning, and it probably takes a bullish result from this morning’s US scheduled data to begin to neutralize the selling. Yesterday’s failed attempt to break through resistance and subsequent downdraft points to a downside test of 11,750 in the December E-mini Dow and 1224 in the December S&P 500.

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DOLLAR: The Dollar remains under heavy pressure going into this morning’s trading, with prices sliding to their lowest levels since late September. Renewed optimism towards a resolution to the Euro zone debt crisis has dampened global risk concerns, which in turn eroded a large portion of the Dollar’s safe-haven support. The most recent Commitment of Traders report indicated that the “combined” spec and fund net long Dollar position has hit a new record level at 49,966 contracts as of last Tuesday, even after the pullback from new high ground. As long as global optimism receives a boost from overseas risk developments, the Dollar is likely to remain on the defensive during the balance of todays trading. The Dollar may find support near the 78.20 level early this morning but could reach lower levels if global equity markets can maintain their strength throughout the session. The Commitments of Traders Futures and Options report as of October 4th for US Dollar showed Non-Commercial traders were net long 40,671 contracts, an increase of 1,981. The Commercial traders were net short 49,966 contracts, an increase of 2,871. The Nonreportable traders were net long 9,295 contracts, an increase of 891 contracts. Non-Commercial and Nonreportable combined traders held a net long position of 49,966 contracts. This represents an increase of 2,872 contracts in the net long position held by these traders.

EURO: The Dec Euro started out this week with a huge upside move, clearly finding strength from weekend discussions between German Chancellor Merkel and French President Sarkozy. While details are sorely lacking at this point, the magic words “bank recapitalization” have helped to lift prices back into the late September trading range. The most recent Commitment of Traders report showed that the Nonreportable Net Short Dollar position hit a new record level at 28,567 contracts as of last Tuesday, before the market started to recover late last week. Given the severity of today’s move, any sort of negative news item from inside the Euro zone could derail this rally in a hurry. For now, the Dec Euro may find resistance near the 135.90 level during today’s trading and should hold today’s early strength through the rest of the session. The Commitments of Traders Futures and Options report as of October 4th for Euro showed Non-Commercial traders were net short 78,897 contracts, a decrease of 746 contracts. The Commercial traders were net long 107,464 contracts, a decrease of 464 contracts. The Nonreportable traders were net short 28,567 contracts, an increase of 282 contracts. Non-Commercial and Nonreportable combined traders held a net short position of 107,464 contracts. This represents a decrease of 464 contracts in the net short position held by these traders.

YEN: The December Yen has posted moderate gains this morning, although prices have remained well within the recent trading range. Improving Euro zone sentiment may erode a portion of the December Yen’s recent safe-haven support while the threat of intervention may resume once Japanese markets start up after today’s holiday. The December Yen may find resistance near the 130.80 level, and may require a flare-up of risk tensions in order to climb back towards the recent highs during the near future.

SWISS: While the Dec Swiss has posted strong gains this morning, prices have only recovered a small portion of losses since the August highs. There has been continued talk that the Swiss National Bank could adjust their “peg” to the Euro well above the current 1.20/1 level, which could send prices back towards the recent lows. The Dec Swiss may find resistance near the 110.20 level today, and for the moment should continue to benefit from Euro zone optimism.

POUND: The Dec Pound was able to extend the post-Bank of England meeting up to new highs this morning, finding a large measure of support from potential Euro zone bank recapitalization measures. While the full impact of last week’s UK quantitative easing news may not be known for a while, the Dec Pound should find support from stronger equity markets on both sides of the Atlantic. The Dec Pound may find resistance around the 156.60 level later on this morning, and will remain strong as long as macro-economic sentiment continues to improve.

CANADIAN DOLLAR: The Dec Canadian has recovered most of Friday’s late pullback, and is climbing back towards new highs for this rebound. A very strong Canadian jobs numbers last week is combining with stronger commodity prices this week to provide a large amount of strength to the Dec Canadian this morning. The Dec Canadian may find resistance near the 97.35 level during the session, with potential for further gains if broad-market sentiment continues to improve.

TODAY’S MARKET IDEAS: With no US economic data due to the Columbus Day holiday, market focus on diminishing Euro zone risk concerns will likely keep the Dollar on the defensive during today’s session. If this continues, the December Yen may turn lower as safe-haven support begins to erode.

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DOLLAR: The Dollar has given up overnight gains and is heading towards a new low for the week, as diminishing Euro zone risk concerns may be starting to erode recent safe-haven support. While an “all-clear” signal is still well down the road on Greek debt problems, stronger equity markets on both sides of the Atlantic will likely be to the Dollar’s disadvantage. Market focus may shift towards the start of the FOMC meeting later this morning, where the potential for new quantitative easing measures from the US Fed could put further pressure on the Dollar. Today’s US Housing number could provide an opportunity for the Dollar to rebound if they are better than expected but any return to recent highs may require another risk flare-up out of the Euro zone. The Dollar may find support around the 77.30 level today, and could extend this sell off even further to the downside if global market sentiment continues to improve.

EURO: The Dec Euro has been through a volatile overnight session but may be finding some strength heading into this morning. A rating cut of Italy’s sovereign debt kept the Dec Euro on the defensive last night, but positive developments from Greece are helping to turn the market around to the upside. If there is a formal announcement from Athens that further bailout funds are coming, the Dec Euro will likely make a run at last week’s highs. With many other Euro zone problems yet to be resolved, however, the Dec Euro may have trouble holding onto today’s rebound. The Dec Euro may find initial resistance near the 137.25 level later on this morning, and could reach further to the upside if news from Greece remains positive.

YEN: The December Yen has held onto this week’s strength, recovering from overnight pressure to post moderate gains this morning. While recent flight to quality support may ease now that there are some positive signs from Greece, there is still plenty of potential trouble spots in that region to keep some measure of safe-haven support under the Yen. The December Yen may find resistance near the 131.20 level, and may have difficulty climbing above that area if conditions in the Euro zone continue to show some improvement.

SWISS: The Dec Swiss has recovered from overnight losses this morning, but the Swiss continues to have trouble recovering from this month’s steep losses. Today’s Swiss Trade surplus data indicated a large decline from the previous month, and that may provide further evidence to the Swiss National Bank to maintain their current “peg” to the Euro. The Dec Swiss may find resistance again near the 114.10 level today, and will need to hear positive development from Greece in order to retest last week’s highs.

POUND: The Dec Pound has been able to post moderate gains this morning but remains solidly at the bottom end of this month’s large sell off. Although the Dec Pound will be a main beneficiary of improved macro-economic sentiment, recent comments by Bank of England officials, hinting at new quantitative easing for the UK are going to weigh on prices. The Dec Pound may find resistance around the 157.25 level this morning, and could see additional gains if there is further positive news items out of Athens later on during the session.

CANADIAN DOLLAR: The Dec Canadian has found support from a broad-based commodity rebound this morning, although prices have posted only moderate gains so far. Today’s Canadian economic data may help to maintain this rebound but any chance for a return to last week’s highs may require the help of a global “relief” rally, triggered by good news from the Greece debt situation. The Dec Canadian may find resistance near the 101.00 area later today, and will likely need to have much lower global risk concerns, in order to have any extended recovery from these lower price levels.

TODAY’S MARKET IDEAS: The Dollar is taking direction this morning from events in the Euro zone, so any additional positive news on the Greece debt situation could send prices down towards the recent lows. The Dec Euro, Dec Swiss, and Dec Pound would all clearly benefit if the news that additional aid for Greece has been formally approved reaches the market later today.

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DOLLAR: The Dollar has given back overnight gains and has come under pressure this morning, with prices staying well within the recent trading range. With few major US economic numbers early on this week, the focus on Fed Chairman Bernanke’s Jackson Hole speech on Friday has kept Dollar strength limited at best. Yesterday’s record low 2-year auction yield may be an indication of the market’s lack of confidence in US prospects, although a positively received Durable Goods number later this morning could help to put a floor under prices. While overseas risk concerns could provide support if there is a flare-up later today, a more likely scenario is that the Dollar remains on the defensive for the balance of today’s session. The Dollar may find support near the 73.65 level during today’s trading, and will need a major turnaround in sentiment in order to lift well clear of these low price levels.

EURO: The Sept Euro has been able to overcome a weak private survey of German business sentiment and posted moderate gains this morning. While Euro zone debt concerns have not been fully resolved, a lack of fresh negative headlines may be doing more to strengthen the Sept Euro than any tangible improvement with economic conditions. The market remains vulnerable to a pullback if problems do materialize, however, so today’s upside may remain limited until calmer market conditions prevail. The Sept Euro may find resistance near the 144.75 level, and may need to see improved global sentiment in order to rally beyond these current price levels.

YEN: The September Yen recovered from overnight pressure and has posted moderate gains coming into this morning’s session. Today’s credit rating downgrade for Japan may not have come as a total shock to the market given their current economic and political conditions but the Sept Yen’s ability to recover from that news is a strong indication of the amount of safe haven support that is still in the market. The Sept Yen may find resistance around the 130.80 level, but it could see further gains if global risk concerns become a factor again during today’s trading.

SWISS: The Sept Swiss has also found support within the past few hours and lifted back into positive territory, with prices holding well within the recent trading range. There has been some modest flight to quality support this morning, although recent strength has been limited by the Swiss National Bank’s efforts to weaken their currency. The Sept Swiss may find resistance around the 127.00 level during the session, and would likely need a fresh risk headline out of the Euro zone in order to rise above this recent trading range.

POUND: The Sept Pound has held near the upper end of this month’s rally, although a lack of recent UK economic data has kept the market subdued so far this week. Improved global economic sentiment will likely be to the Sept Pound’s benefit, even with prospects for near-term UK rate hikes staying remote at best. The Sept Pound may find resistance near the 165.35 level and could produce further gains if equity markets on both sides of the Atlantic have a strong rally.

CANADIAN DOLLAR: The Sept Canadian appears to be consolidating within the recent trading range, finding little carryover support from energy and precious metals prices. With this week’s Canadian economic slate fairly quiet, prices may have some difficulty rising above these recent levels. The Sept Canadian may find support near the 100.80 level, and could come under additional pressure if there is a broad-based commodity sell off later in today’s session.

TODAY’S MARKET IDEAS: The Dollar may have trouble rising above these recent price levels until Fed Chairman Bernanke’s Jackson Hole speech is out of the way. It could rise into positive territory if today’s Durable Goods numbers can exceed market expectations. Both the Sept Pound and Sept Canadian would benefit from stronger equity markets on both sides of the Atlantic.

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DOLLAR: The Dollar has been weak this morning but has risen well above the evening lows, in what has been another turbulent overnight session. Friday’s US debt downgrade by S&P may be pressuring US equity markets, but the strength of Treasury futures may be providing some measure of support for the Dollar. In addition, a turnaround in Europe after early optimism could lift the Dollar up into positive territory later on today. The most recent Commitment of Traders reports showed that non-Commercial traders reduced their net-long Dollar position as of last Tuesday, before prices made a large upside surge late last week. It will be difficult for the Dollar to get past severe losses in US equity markets today, but this morning’s shift in risk concern back across the Atlantic may help to keep prices well away from the recent lows. The Dollar may find support near the 74.50 level during today’s session but prices will continue to have a bumpy ride until the close. The Commitments of Traders Futures and Options report as of August 2nd for US Dollar showed Non-Commercial traders were net long 627 contracts, a decrease of 1,976 contracts. The Commercial traders were net short 3,342 contracts, a decrease of 1,683 contracts. The Non-reportable traders were net long 2,715 contracts, an increase of 293 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 3,342 contracts. This represents a decrease of 1,683 contracts in the net long position held by these traders.

EURO: The Sept Euro gave back substantial gains during the past few hours, and has dropped back towards unchanged levels this morning. An agreement to have the ECB buy Spanish and Italian debt was well received by the market early in the overnight session, but this optimism could not be sustained for long. The most recent Commitment of Traders report indicated non Commercial traders had a substantial reduction in their net-long Euro position as of last Tuesday, a period when the market was descending towards the recent lows. Given how far the Sept Euro has pulled back from overnight highs, there may be further downside left to this sell off unless EU officials can further calm the markets. The Sept Euro may find support near the 142.25 level, and may need some help in order to ease this morning’s pressure. The Commitments of Traders Futures and Options report as of August 2nd for Euro showed Non-Commercial traders were net long 979 contracts, a decrease of 15,462 contracts. The Commercial traders were net short 4,039 contracts, a decrease of 17,299 contracts. The Non-reportable traders were net long 3,061 contracts, a decrease of 1,836 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 4,040 contracts. This represents a decrease of 17,298 contracts in the net long position held by these traders.

YEN: The September Yen posted sharp gains during overnight trading, and is close to fully recovering from last week’s central bank intervention. While 4.5 trillion Yen down the drain may be painful for the Bank of Japan to swallow, the current flight to quality tilt may have been difficult to overcome given the pressure on global equity markets. Further intervention is by no means off the table, as the weekend G7 statement may hint at concerted action during the near future. The September Yen may find resistance near the 129.25 level today, and is likely to hold onto these large gains until global equity markets can put the brakes on this current meltdown.

SWISS: The Sept Swiss made another new record high during overnight trading and continues to post solid gains in spite of a substantial pullback from new high ground. As long as global equity markets remains under pressure during today’s session, the Sept Swiss will remain fairly close to these fresh highs. The Swiss National Bank may be closer to intervention now that last week’s rate cut had little lasting effect, but they may not step into the market until safe-haven support has eased somewhat. The Sept Swiss may find resistance near the 132.00 level later on today, and will remain well supported as long as global equity markets are heading to the downside.

POUND: The Sept Pound fell back from a 2-month high during the overnight session but has held onto moderate gains this morning. While overnight strength may have due in large part to carryover support from Euro zone debt support of Italy and Spain, the Sept Pound could be more likely to hold onto this morning’s gains. The Sept Pound may retest resistance near the 164.20 level this morning, and could see a further recovery if global equity markets can find a bottom.

CANADIAN DOLLAR: The Sept Canadian remains on the defensive this morning, and has fallen nearly 5 cents before last month’s highs. While recent Canadian economic data has been comparatively strong, a $16 decline in crude oil prices since July 26th has been difficult to overcome. The Sept Canadian may find support near the 101.00 level, and will likely need a turnaround in the energy markets in order to rebound from these current prices levels.

TODAY’S MARKET IDEAS: While the Dollar has been able to make a large recovery from overnight lows, further gains from these price levels will require some strength from US equity markets. If equity markets both sides of the Atlantic call mount a recovery later on this morning, both the Sept Yen and Sept Swiss could see a substantial pullback from current prices levels.

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