The yen managed to climb versus several main traded currencies and hit the highest level versus the U.S. dollar after Japanese policy makers affirmed that a strong currency will not impact the country’s economy negatively.

The Japanese currency gained confidence today climbing versus the greenback and the euro after the nation’s Finance Minister Hirohisa Fujii affirmed that the yen is currently fluctuating withing comfortable parameters, helping investors to purchase yen-price assets as these statements could be interpreted as a negative sign from Bank of Japan to take measures to stop the yen’s rally. The yen gained mostly versus the greenback, currency which has been affect by a negative sentiment, making it to lose versus most of the 16 main trading currencies, providing support for the yen to touch a nine-month high versus the U.S. dollar, but also high-yielding currencies like the Australian dollar and emergent market options like the Brazilian real hit record highs versus the dollar this week.

Fujii’s statement was perceived with optimism by both Japanese and international traders, since before this week, speculations suggested that an eventual rally for the Japanese currency would be halted by measures coming from the Bank of Japan. Today’s declarations functioned as a green light for the yen to climb further versus the U.S. dollar, and these movements tend to continue during the next week.

USD/JPY traded at 88.18 as of 10:18 GMT from 89.07 in the intraday comparison.

The dollar started this week losing versus the euro and the pound after speculations that Group of 7 central bankers would provide statements supporting the dollar were not confirmed, erasing last week gains and setting the dollar to a bearish scenario again.

Last week was marked by a good U.S. dollar performance as a G-7 meeting was expect to stress the importance of a strong greenback, as it could provide solid competitiveness for exporters around the world, specially in the Eurozone, where they have been struggling to find costumers due to the current euro’s levels. Group of 7 policy makers did not signaled that they support a strong dollar, indicating that natural market regulations are more welcome than disorderly swings in currency markets, setting the U.S. currency back to a bearish scenario, where the Australian dollar also gained significantly this Monday.

The shift in sentiment towards the dollar may set the U.S. currency to a new losing streak towards record lows according to some analysts, but even if the scenario is not the most optimistic for the greenback, other currencies, with a few exceptions, are still struggling to find their way out of recession, so the dollar bearish scenario may not impact the currency as much as it would in normal conditions, since most parts of the world are still facing a recession period.

EUR/USD traded at 1.4626 as of 11:02 GMT from an opening rate of 1.4595 yesterday. AUD/USD traded at 0.8745 from 0.8670.

The U.S. currency rebounded this week from a twelve-month low versus the euro and several other currencies as concerns regarding the global economic situations reappeared today, increasing risk aversion and consequently helping the greenback to gain in foreign-exchange markets.

Toyoo Gyohten, a former currency official with influence in the Japanese government affirmed today that the U.S. dollar should remain as the global reserve currency, helping the dollar to gain in a pessimistic scenario that increased risk aversion, after Russia cut its national interest rates to spur the country’s economy, creating speculations that the situation is still far from optimal in the biggest European country. The dollar gained versus most of the main currencies today, specially the euro, but it failed to contain the Australian dollar rally, which is being fueled by speculations regarding interest rate hikes which could occur before the end of the year, suggesting that the South Pacific nation is one of the most resilient from the global slump.

A great part of the trading community is already waiting for rate hikes and placing their bets according to that, but today, Russia surprised the world cutting interest rates, bringing back uncertainties and risk aversion, which is favorable for the greenback. There is also a sentiment that the dollar could be undervalued, and we may witness a rally for the greenback in the short-term as a correction for this disparities.

EUR/USD traded at 1.4552 as of 11:03 GMT from a previous rate of 1.4651 yesterday. USD/JPY traded at 89.93 after touching 88.47 yesterday.

After a report indicating the highest unemployment rate in more than a decade in the United Kingdom, the pound lost versus most of the 16 main traded currencies, as the British economy has been one of the most weakened in the region, shunning investors from assets in Great Britain.

Even if the global economy has been showing sings of improvement in the U.K. and globally, unemployment rates are one of the most affected figures by the new adjustments of the economy, breaking records in European Union, Japan, as well as in the U.K., which posted the highest unemployment rate since 1995 at 7.9 percent of the workforce, raising concerns regarding the socioeconomic future in the United Kingdom. The British pound has been one of the few currencies that did not gained significantly versus the weakened U.S. dollar, which is losing appeal among traders by the day, as investors seek for yield in stock markets and emergent countries.

Yesterday’s Bank of England declarations regarding further measures to adjusts national accounts combined with today’s unemployment figures made the pound’s attractiveness to fall significantly, as several world economic regions like the South Pacific provide a much more confident scenario for traders to inject money, leaving the pound together with the U.S. dollar as the worse bets for this week in foreign-exchange markets.

GBP/USD traded at 1.6519 as of 11:18 GMT from a previous rate of 1.6598 yesterday. EUR/GBP traded at 0.8883 from 0.8820 in the intraday comparison.

The pound started the week losing versus most of major traded currencies around the world as speculations suggested that the crisis in the real estate sector will continue in 2010, decreasing attractiveness for the UK's currency in foreign exchange markets.

After Ernst & Young LLC's Item Club statements declaring that house prices in the UK will continue to decline next year, the sentiment towards the British currency was affected, making the pound to decline versus most of the 16 main traded currencies, as the real estate market crisis in the country was one of the main factors behind the biggest economic slump in the UK since the Second World War. The pound reached a one month high versus the U.S. dollar last week as optimism spread out in trading markets, but domestic complications once again affected UK's currency, which is failing to climb to pre-crisis levels, as stocks declined in London this morning, shunning investors from pound-priced assets.

Analysts remain cautious to state a recovery for the British currency, as domestic data remains rather negative, influencing traders sentiment towards the pound, suggesting that at least in the short-mid term UK's currency will still be not one of the best bets in foreign-exchange markets.

GBP/USD traded at 1.6543 as of 10:33 GMT from a previous rate of 1.6652 when markets opened. GBP/JPY fell to 150.14 from 150.56.

The pound climbed today versus most of the 6 main traded currencies as the situation starts to become more positive for the British economy, pushing stocks up in London and consequently attracting international inflows of capitals to the United Kingdom.

After U.K. manufacturing output had the highest climb in 18 months today in a report published by the Office for National Statistics, the pound rose sharply, gaining virtually against all 16 main traded currencies worldwide, rebounding from a rather weak performance last week, when a wave of pessimism still affected pound-priced assets attractiveness. Stocks in the U.K. rose to the highest level since October last year, when the credit crunch plunged the British Isles into a intense sequence of losses in multiple bearish market weeks. U.K. manufacturing went much beyond forecasts, which suggested a 0.3 percent increase for the past month, but the actual report indicated an amazing 0.9 jump, being this surprising figures the main vector to push the pound up today in foreign-exchange markets.

According to many analysts, the pound remains undervalued, still suffering the consequences of the credit crunch that caused the biggest crisis in the country since the Second World War, but if favorable news still follow, the pound may find support for a big uptrend in the following months.

Several reasons in Asia and speculations in the U.S. led the yen to extend its gains versus most of the 16 main traded currencies, as pessimism news often raise demand for safer assets, being the yen one of the safest options which benefit from this phenomenon.

The yen is being traded at the highest rate in almost two months versus the euro as speculations suggest that the CIT Group Inc.’s financial situation is still deteriorating, bringing concerns back that the U.S. banking sector remains far from stabilization, attracting investors towards safety, mainly favoring the Japanese currency. Stocks also declined in Asia, mainly in Japan, indicating that expectations towards the world economic recovery have been unmet so far, as risk aversion is constantly climbing, damping demand for high-yielding assets as investors try to protect their portfolios.

Unless more solid evidences of a steady recovery start to appear in the main global economic regions, it is likely that the pattern for the yen will remain bullish, as the previous euphoria with the first positive reports after months of disastrous data start to fade. Concerns regarding the CIT Group reappeared this week after speculations that one of the most important banking conglomerates would file for bankruptcy emerged in June, rising risk aversion in foreign-exchange markets.

EUR/JPY traded at 131.82 as of 8:54 GMT from a previous rate of 133.50 in the intraday comparison. GBP/USD traded at 149.73 from 152.33.

The yen started this week climbing versus several higher-yielding currencies worldwide as Asian stocks declined today, spurring demand for the safety of the yen, which is also benefiting from a new elected party in Japan, renewing hopes for the nation’s socioeconomic future.

A new ruling party was elected this weekend in Japan leading speculators to believe that foreign investors will once again inject capital in the country, since the opposition Democratic Party of Japan brings new hopes for the country which posted last week the highest unemployment rate since the Second World War. Stocks in Asia declined sharply led by the Shanghai Composite Index which declined more than 6 percent, spurring demand for safety among traders and setting the Japanese currency to the highest rate versus the euro in more than a month.

Despite Japanese elections with the opposition party coming out as a winner, the yen’s rise is mostly due to risk aversion, according to analysts. Stocks and other high-yielding assets climbed substantially and the fundamentals are not as positive to provide a solid support for intense bullish days as those witnessed during the past two months. High volatility is still expected for the yen pairs as the future of most global economic regions remains very uncertain.

EUR/JPY traded at 132.90 as of 9:33 GMT from an opening rate this week of 133.71. AUD/JPY traded at 77.97 from 78.71.

The pound posted another day of losses versus most of the 16 main traded currencies as the economic situation in Great Britain remains behind most of the other main global economies, decreasing attractiveness for the British currency.

Today’s published data and tomorrow’s forecasts are once again impacting the pound which is posting the sixth consecutive day of losses versus the euro, since U.K.’s economic outlook is currently far more negative than the Eurozone’s perspectives. Today, the German Ifo business climate came positive beyond expectations, helping the euro to climb to the highest level in almost 3 months versus the British currency, and this trend is likely to follow as tomorrow, a U.K. house prices report is expected to bring rather disappointing numbers, which would weigh on the pound even further.

Currency specialists forecast a rather complicated short-term future for the U.K. currency as other economic regions throughout the world, like the South Pacific and North America, are providing more consistent signs of recovery than the pound country, which is certainly decreasing attractiveness for the British currency, causing a mass capital outflow from pound-priced assets towards more attractive bets throughout the financial world. The pound is likely to remain bearish, until more optimistic reports start to appear in the United Kingdom.

EUR/GBP climbed to 0.8783 as of 11:02 GMT from yesterday’s rate of 0.8728. GBP/USD traded at 1.6279 from 1.6390.

Germany and France posted favorable reports today indicating that the wealthiest countries in the Eurozone may be finding its way out of recession, evidence which helped the euro to gain versus several currencies towards the end of this week’s session.

After surprising economists worldwide several days ago when Germany and France posted an unexpected growth for the second quarter, today, the strongest economies in the Eurozone bloc posted a rise in manufacturing and services industries, once again going beyond estimations and bringing optimism suggesting that the current recession in the region may be having its final days. The PMI numbers were not sufficient to make the euro to rally versus the yen, since China affirmed that it may restrict capital requirements for domestic banks, causing an instant negative reaction in Asian stocks, which is a yen positive factor.

Analysts evaluate the current market reaction to European PMI numbers as a short-term market impulse, even though the data provided are solid and indeed an evidence of economic improvements, mainly in Germany, while France performed less positively in these reports. Germany is the Eurozone’s economic heart, and when the country finds its way out of recession the Euro is like to be bullish.

EUR/USD traded at 1.4303 as of 9:55 GMT from a previous rate of 1.4237 in the intraday comparison. EUR/JPY traded near neutrality from yesterday’s rate at 134.12.

After rallying to a 10-month high versus the dollar two weeks ago, the pound is declining severely versus most of the main traded currencies, as the real estate scenario deteriorates in the United Kingdom, shunning investors from pound-priced assets.

The most reliable internet real estate portal in the U.K., Rightmove Plc, indicated that house prices in Britain declined 2.2 percent this month, after climbing 0.6 percent in July, a fact which immediately declined attractiveness for the pound, since the real estate sector in the U.K. was the main responsible to plunge the country in its worse recession since the Second World War. Stocks worldwide also declined, pushing investors to safer bets, making the Japanese yen and the U.S. dollar the biggest winners today versus the Great Britain pound, as reports indicate that economic conditions in Europe remain worse than in other areas like in South Pacific and Latin America.

Both international and domestic events are affecting the pound this week, and may plunge it to lower levels in the short term as risk aversion is growing worldwide, at the same time that the British economy is unable to show signs of solid recovery, which push traders naturally away from investing in the country.

GBP/USD traded at 1.6301 as of 11:14 GMT from an opening price of 1.6488 yesterday. EUR/GBP rose to 0.8626 from 0.8595.

The dollar, which rebounded since last Friday as economic reports did not reflect a favorable situation in Asia and Europe, declined slightly versus the euro today, before tomorrow’s Fed Meeting.

The Federal Reserve is due to meet to tomorrow and will probably declare that benchmark interest rates in the United States will remain low, affecting the greenback outlook today versus multiple main traded currencies, as low interest rates are always negative for investors to purchase assets in a country.

EUR/USD traded at 1.4222 as of 17:21 GMT from a previous rate of 1.4100 six hours earlier

The pound is gaining again versus the euro and the dollar as services industry grew and U.K manufacturing jump beyond expectations in July, pushing the pound to the highest level in 9 months.

The pound sterling may be climbing its way to pre-crisis levels as positive news for the British economy appeared this week after months of consecutive shrinking numbers and political crisis in the British Isles. Today the pound is trading at the highest level in 9 months versus the greenback and the highest in one month versus the euro, fueled by British reports this week that indicated an increase in U.K. manufacturing and services industry figures, helping the pound to widen the gap versus the euro and rebound versus most of the 16 most traded currencies, losing only to extremely high-yielding options, like the Brazilian real.

Analysts affirm that the economic recovery in the U.K. is proving to be happening faster than in other parts of the Europe, which is boosting demand for the pound, and raising attractiveness for equities markets in London. If positive news continue to come in the U.K. it is likely that a rebound pattern will be set for the pound, which is likely to gain mostly versus the greenback and yen, considered refuge currencies and unattractive for the current economic scenario.

GBP/USD traded at 1.7016 as of 11:11 GMT from 1.6953 in the intraday comparison, being the current, the highest rate since last December.

The euro has been trading near a two-month high versus the dollar during most of the past week, and may climb to higher levels today on a U.S. manufacturing report that is likely to show the highest production in a twelve-month period, raising risk appetite among investors and affecting the greenback negatively.

The dollar is losing constantly versus the Eurozone currency since the global economy has been posting more solid signs of recovery, three weeks ago, which is helping the euro outlook to climb as its riskier profile, compared to the dollar, is luring investors back to European equities markets, consequently pushing the bloc’s currency up. The euro also climbed versus the yen, as former Federal Reserve Governor Alan Greenspan stated that the economic recovery may come earlier than expected, which affected negatively the yen, being the latter a refuge currency for stormy financial markets periods.

According to analysts, the euro is climbing mostly versus refuge currencies, but against other higher-yielding options, it continues rather stable. A very strong euro is not seen positively in Europe, as the region exports are affected in competitiveness by a stronger currency, nevertheless, the euro is liked to continue its rally versus the greenback and the yen.

EUR/USD traded at 1.4285 as of 11:08 GMT from an equal opening rate around the 1.4300 level. EUR/JPY traded at 135.63 from 135.19.

The U.S. dollar started another week losing against currencies like the euro, as a report today is expected to show that home sales in the United States rose significantly, suggesting that the global slump is facing its final days, consequently attracting investors to riskier assets in stocks.

The dollar is entering the third week of losses today as multiple factors are pushing the currency down, from optimism in Asian stock markets, to concerns regarding the U.S. dollar as the main world reserve currency. A report to be released today in the United States is likely to indicated a sharp rise in the nation’s monthly home sales, which would prompt investors further to high-yield, since an improved scenario in the real estate market is a solid signal that the recession in ending in America and consequently in a global dimension.

The optimism is high, the questioning regarding the U.S. dollar as the main reserve currency, and speculations that foreign-exchange volatility will fall weighed altogether to create a negative outlook for the greenback in the beginning of this week. According to specialists its hard to say if the dollar will decline versus the euro to last year’s levels, when it hit $1.60, but certainly, with the current scenario we will be likely to see the dollar going further down.

EUR/USD traded at 1.4285 as of 11:53 GMT from 1.4215 in the beginning of the session. USD/CHF declined to 1.0661 from 1.0725.

The euro posted the first climb versus the U.S. in four days as this Friday a report indicated that the European manufacturing and services contracted at a slower pace, and German business confidence improved.

The Eurozone currency is ending the second week of gains versus low-yielding currencies like the Japanese yen and the U.S. dollar as a rally in stocks that started in the beginning of the month raised confidence among traders to take riskier positions in currency markets, which until then, were influenced by concerns regarding the global slump and its consequences. Today a report indicated a consecutive climb for the German business sentiment, suggesting that the biggest economy in the European Union is finding its way out of recession, adding optimism to the Euro outlook. The pound declined versus the euro as the quarterly GDP figures slumped more than estimates, reflecting on pessimism towards the second most traded currency in Europe.

German financial analysts are happy to affirm that reports in the region are finally coming with confident figures. Today’s German business sentiment surpassed expectations and helped stock markets in Europe to climb, attracting investors to purchase euro priced assets. United Kingdom’s GDP figures also helped the euro to gain regionally, since evidences that the Eurozone is economically healthier than Great Britain add attractiveness for the euro outlook.

EUR/USD traded at 1.4245 as fo 12:06 GMT after being traded at 1.4122 hours earlier. EUR/GBP traded at 0.8645 from 0.8580.

The U.S. currency rebounded versus several currencies after bottoming at a six-week low versus the euro, as speculations that the CIT Group may file for bankruptcy boosted demand for safety.

The dollar climbed versus most of the currencies after two weeks of losses on a strong wave of risk appetite that pushed investors to high-yield currencies, damping demand for the relative safety of the greenback. Concerns that the CIT Group Inc. will file for bankruptcy reappeared today, spurring demand for safety, consequently favoring the dollar. The pound posted more significant losses against the greenback as a report indicated that the public deficit in Great Britain is still at the highest levels since it was started to be analyzed, in 1993.

GBP/USD traded at 1.6426 as of 19:49 after peaking at 1.6570 yesterday. EUR/USD traded at 1.4195 from 1.4275.

The pound climbed sharply against the dollar and the yen as an employment report with optimistic figures may have indicated that the worst of the recession is already behind, spurring demand for the British currency.

The pound, which lost significantly against the dollar and the yen last week, virtually pared its losses as an employment report in Britain brought optimism back among domestic investors. Today Intel Corp. forecast sales beyond analysts’ predictions, adding attractiveness for the pound sterling profile, which may proceed its rally if the current scenario remains unchanged.

GBP/USD traded at 1.6422 as of 20:16 GMT from an intraday price of 1.6275.

The euro is posting its worst weekly performance against the yen in two months and losing against several major currencies as more than 10 Eastern European nations will need loans to rescue their economies from the rising recession in the region.

The Eurozone currency weakened against virtually all of the 16 most traded currencies after an article posted in the German newspaper Handelsblatt affirmed that the International Monetary Fund would be already discussing aid plans for at least 10 Eastern European nations, including EU members like Bulgaria and Balkan nations like Croatia and Macedonia. The German newspaper stated that the situation is more delicate in countries like Belarus, Romania and Latvia, being the latter facing the worst recession among all European Union country members. The yen climbed this week helped by a growing risk aversion, which attracted investors to its safer profile, making the Euro to face one of its most negative weeks versus the yen since the beginning of the year.

Investors were led to sell euro priced assets this week as risk aversion is rising on markets due to concerns regarding the world recession duration. The negative speculations on Eastern Europe economic health has led traders to sell the euro this week and search for safety in currencies like the yen and the U.S. dollar.

EUR/JPY fell trading at 129.05 as of 9:40 GMT from 130.15 in the intraday. EUR/USD remained bearish being traded at 1.3911 from 1.3952.

The Japanese yen, which was rallying intensively against all majors after a wave of risk aversion struck markets last week, dropped today as Japanese importers sold the currency led by speculations that after this week’s rally, the yen would be overpriced.

The yen lost today versus all 16 most traded currencies after a Japanese government official affirmed that the current volatility and extreme valuation of the national currency would be unfavorable, stopping immediately the yen’s rally, as investors speculate that the Japanese government may eventually intervene to control further gains of the Asian currency. After speculations appeared last week that the global slump would be deeper and longer, yesterday, the International Monetary Fund predicted a revised global growth for 2010, with rather optimistic figures, encouraging traders to return to higher-yielding options in stocks and in the currency market, consequently damping demand for refuge currencies like the yen and the greenback.

Currency analysts point on charts that the yen’s rally was haste and sharp, and even if being supported by fundamental factors, a correction is a natural consequence after an intense climb. Тhe speculations regarding importers selling the yen to profit also added to the yen’s rally to ease and post the first day of losses since last week’s U.S. jobs report.

USD/JPY rose to 93.22 as of 10:31 GMT after hitting 91.75 the lowest price in four months. GBP/JPY followed, trading at 150.88 from 146.65.

The British currency, which was failing to climb versus its main rivals, the euro and the dollar, posted significant gains in the beginning of this week as improved economic data emerged in the latest British reports.

The pound hit a eight-month high level against the greenback after a Nationwide Building Society report indicated a rise in house prices combined with another report showing improved consumer confidence data, making investors to purchase assets priced in sterling massively, damping demand not only for the U.S. dollar, but also other options like the euro and the yen. The British currency was having a hard time to climb to levels near those before the global slump started, as the real estate market suffered intensely due to the credit crunch, affecting mortgages availability and loan possibilities. Today, the Nationwide Building Society report climbed 0.9 percent, and this increase is highly considerate among traders as a sign of economic revival in Great Britain, pushing the pound sterling high versus virtually all major traded currencies.

British economists are very optimistic with the house price rises, saying it will create a solid bullish pattern for the national currency, and that it will follow for the next months, instigating traders to purchase the pound, which was relatively devalued versus the euro and the greenback.

GBP/USD traded at 1.6595 as of 11:11 GMT falling from a high price of 1.6715 hours before but still on the raise if compared to yesterday’s rate of 1.6490. EUR/GBP was very volatile in the previous 24 hour period, but the rate remains for the moment virtually the same at 0.8508.

The U.S. dollar had a weak performance today losing against most of the major traded currencies, as stocks rose for a third day, mainly in Asia, damping demand for the greenback.

The U.S. currency lost today against 14 of the 16 main currencies, after Dallas Federal Reserve Governor Richard Fisher is likely to include in the next central bank statement that interest rates in the United States will remain at exceptionally low levels, disagreeing with previous forecasts that mentioned an eventual rate hike to follow in the second semester, as long as the rates remain at the present levels, the attractiveness of the greenback is likely to fade, as investors will tend to purchase higher-yielding options. The Australian dollar was one of the biggest winners against the greenback this Friday as commodities prices rebounded, spurring demand for assets in that country.

The current recovery in the stock markets brought risk appetite once again to high levels among traders, which were recently opting for the greenback as a safe refuge during downmarket days, adding to that, lowered expectations for the Fed benchmark interest rate damped even more the weakening demand for the U.S. currency. Analysts affirm that the dollar might enter a new bearish period, if risk aversions continues to fade.

EUR/USD fell and traded at 1.4036 as of 9:41 GMT, from yesterday’s rate of 1.3945. AUD/USD followed the same path and rose from 0.7955 to 0.8041.

The Japanese yen, often associated as the best performing currency in times of crisis due to its refuge investment profile, lost today as the OECD predicted an unexpected growth to its member countries, spurring demand for high-yielding assets.

The Organization for Economic Cooperation and Development stated today that its 30 member nations are expected to grow 0.7 percent next year, after a decline forecast of 4.1 for 2009, an affirmation which despite the negative numbers for the current year rose investors confidence to purchase higher-yielding assets this Wednesday in equities and currencies markets. Currencies like the Norwegian Krone, highly associated with the crude oil rates, and the Australian dollar led the gains versus the yen, which after days of tension in stock markets, had a considerable rally in the beginning of the week. The greenback was one of the few currencies that lost against the yen, as today it is very likely that a report will indicate another drop in durable goods orders in North America.

The yen is in the hands of the risk appetite levels, according to currency strategists. Currently without any expected data from that Asian nation indicating any economic movement other than the already expected, the Japanese currency is being moved by investors confidence and the waves of risk aversion and appetite. It is hard to determine what direction the yen will follow, until the equities and commodities markets define a pattern.

AUD/JPY traded at 76.18 as of 12:19 GMT rising from 75.05. GBP/JPY rose to 157.62 from 155.55.

etail sales dropped in May for the first time in three months, a fact that was not predicted by analysts, weighing negatively on the pound outlook for this Thursday making it to lose ground against the greenback and the euro.

The United Kingdom’s Office for National Statistics affirmed that retail sales fell by 0.6 percent, the first fall in three months, since signs of economic recovery started to slightly appear in the British currently weakened economy. Virtually all main currencies strengthened against the pound, the Swiss franc had most significant gains as the nation’s central bank may let the currency fluctuate to higher levels against the euro and the British currency. The pound has been hit by multiple negative economic and political news during the month of June, and the rally it signaled to start against the U.S. dollar was quickly stopped as data and speculations didn’t provide support for the pound to continue its climb.

The reversed movement on the British retail sales was really disappointing to the already vulnerable outlook for the British pound. Analysts were very confident that this data would continue to climb, reassuring that hopes for a quick economic rebound in the U.K. would follow, by since the market is now confused about the world economic direction, risk aversion tends to increase.

EUR/GBP climbed to 0.8570 as of 12:07 GMT from a previous rate of 0.8515. GBP/USD remained stable in the intraday comparison, after a spike followed by a fall after the disappointing sales data.

After days of decline versus the dollar, the euro climbed against the greenback after the German economic sentiment rose at a level higher than expectations, creating speculations of a quick European economic recovery, spurring demand for the Eurozone currency.

The German ZEW economic sentiment, a report that is highly taken into consideration by traders, since it reflects the biggest European economy financial scenario, reached the highest level in three days this Tuesday, supported mostly by the economic rebound perceived in the Eurozone countries during the past two months. The dollar also weakened on speculations that today BRIC leaders may discuss the greenback position as the main world reserve currency, creating negative speculations around the dollar’s outlook. The German unexpectedly favorable reported added to speculations around the dollar favored a bullish pattern to be built in the euro-dollar currency pair, reversing last week’s rather bearish trend.

The positive report in Germany is regarded by currency specialists in a rather skeptical way, since most of them agree that even if confidence has improved sharply since the first signs of economic recovery started to appear, conditions are still far from optimal and there is no solid support for a full economic rather in Europe as in other parts of the world. There are still many factor weighing on both sides around the euro-dollar pair, it is hard to predict what direction it will take.

EUR/USD rose to 1.3893 as of 12.17 p.m. GMT after it bottomed its bearish trend at 1.3760.

The greenback dropped this Thursday as increasing speculations of a world economic recovery increased risk appetite among traders, inducing the purchase of high-yield currencies.

The New Zealand and the Australian dollar led the list of gains today as an improved world economic scenario is constantly increasing traders confidence to take riskier positions in equities and currencies markets, making the dollar to lose attractiveness. The U. S. dollar had more significant losses against currencies in Oceania as the New Zealand’s central bank left its benchmark interest rates unchanged, while in Australia, jobs had a less-than-expected drop, creating perfect conditions for both the Aussie and the kiwi to rally sharply against the greenback. The pound gained against the dollar as Bank of England policy makers stated that the United Kingdom recession might be ending soon.

Analysts affirm that in a today without relevant data release or financial institutions statements, the market tends to follow the movement of commodity and stock trading, and this scenario is lately often not favorable to the dollar. It is also a common opinion among economists that multiple factors still weigh on the dollar, like the questioning on whether it will continue as the main global reserve currency, creating a bearish tone around the North American currency.

AUD/USD traded at 0.8149 as of 10.48 GMT rising from yesterday’s rate of 0.8055. NZD/USD climbed to 0.6428 from 0.6325.

The Japanese currency had a day of losses against major currencies and higher-yielding assets as the global slump eases, improving investor’s confidence to take riskier positions.

The yen has been suffering multiple sessions of losses since the global recession gave its first signs of ending in the beginning of April, and being regarded by traders as a safe refuge for times of uncertainty and crisis, the Japanese currency lost most of the gains it posted during the worst moments of the crisis, in the last semester of the past year. The pound climbed significantly against the yen as the political crisis in the United Kingdom seems rather controlled. Australia’s dollar climbed versus the yen as an industry report showed an increase in the consumer confidence.

Currency specialists affirm that refuge currencies like the Japanese and the North American may enter an important downtrend, as risk aversion is declining, favoring emergent market currencies like the South Korean won, and commodity-linked currencies like the Australian. It is very likely that a weaken yen will follow for the next months, according to specialists, even if the Japanese economy shows relevant signs of recovery, it won’t probably be able to sustain the yen at high levels, since the outflow of investors towards higher-yielding positions abroad will tend to be much larger.

GBP/JPY rose to 160.33 from 158.45. AUD/JPY rose from 77.75 to 79.43.

The dollar continued its bearish trend against a basket of currencies after a report on U.S. pending home sales posted the third consecutive monthly rise, improving optimism on markets and extending the current risk appetite wave.

Commodity-linked currencies like the Australian dollar and the Brazilian real continued their rally against the greenback as confidence emerges about the world economic rebound, spurring demand for oil and several metals. U.S. pending home sales report had the highest jump in a 7 year period, and being considered as one of the key factors for an eventual economic recovery, this report fueled demand for riskier assets both in stock and currencies markets, consequently downgrading attractiveness of safe-haven currencies like the dollar and the yen. Since the global recession has been showing solid evidences of easing, the greenback is losing versus commodity-linked currencies like Canada’s dollar, and also against higher-yielding options like the euro.

Analysts affirm that not only the world economic rebound is weighing on the dollar outlook, but also the growing questioning on the dollar’s position as a world reserve currency. Since the beginning of the global slump, multiple statements from different governments and economists suggested that the dollar should be substituted as the main global reserve currency, this kind of declarations bring a certain amount of instability for the greenback, consequently weakening the North American currency.

AUD/USD traded at 0.8196 from 0.8070. USD/CAD remained rather stable at 1.0878 after a sharp fall in the beginning of the week. USD/BRL fell to 1.9230 from 1.9430.

The pound sterling rallied against the dollar and the yen after a report on house prices revealed an unexpected rise in May, boosting confidence among investors that the real estate crisis may be easing.

The excellent news for the United Kingdom currency revived hopes for this European nation, one of the most hit by the global crisis and the credit crunch. A report on consumer confidence this month showed the highest level in almost a year, reversing a trend of extremely low marks, adding to that, the house prices, which had constant and severe losses since the second semester of the past year, jumped sharply in May, against most of the expert forecasts, adding an extra stimulus for the improved attractiveness of the pound.

According to analysts, the pound has been favored this week by a combination of two distinct factors: the positive house survey and the gradual recovery in markets boosted by evidences that the global slump is easing considerably. Specialists also indicate that multiple domestic and international news brought the pound down to levels which do not reflect the real value of the currency, and as the scenario is not so gloomy for the moment, the pound is coming back to a more reasonable pricing level.

GBP/USD traded at 1.6120 from 1.5915 and GBP/JPY also rose from 154.20 to 154.73.

The yen hit a 8-week low against the dollar and also lost ground against the euro, as Japanese investors, driven by a new wave of confidence on world markets, return to overseas investments.

The Ministry of Finance in Japan affirmed that national investors had the highest rise in foreign bonds purchases during the current month, this declaration reflected immediately in the Japanese currency market, making the yen to lose against all of the 16 most-traded currencies. The yen also lost ground against high-yielding currencies in Asia, such as the Malaysian ringgit and the South Korean won. Standard&Poor’s raised the outlook for the New Zealand’s debt rating, pushing it sharply up in the Pacific trading area.

Japanese investors are more comfortable to take riskier positions, since the global financial situation has been reporting sequential signs of recovery, the attractiveness of higher-yielding currencies is once again alluring for Asian traders. Analysts confirm that the Standard&Poor’s report on New Zealand may bring interesting profits for traders willing to enter long in the NZD/JPY currency pair. For the time being the safety profile of the yen as an investment is strongly not recommended among trading experts.

USD/JPY rose enormously from 95.15 to 96.79 and following the same trend GBP/JPY traded at 152.05 to 154.31 and NZD/JPY also rallied from 59.05 to 60.05.