Japanese Yen Approaching 2010 High

The U.S. Dollar is gaining ground against most majorcurrencies with the exception of the Euro and the Japanese Yen.

The U.S. Dollar is gaining ground against most majorcurrencies with the exception of the Euro and the Japanese Yen.

The September Euro is still showing strength due to theupbeat news regarding the Spanish debt auction. Gains could be limited ifweakness prevails in the U.S.equity markets and if traders begin to pare positions ahead of next week’sEuropean bank stress test data.

The September Japanese Yen is rising toward its highestlevel of 2010 as signs the U.S.economy is losing momentum added to speculation the Fed will leave interestrates near zero.

This morning the U.S. government is expected toannounce that household sentiment deteriorated and consumer inflation fell.Both of these reports are expected to weigh on the Dollar and could trigger adecline in the U.S.equity markets once traders digest this morning’s earnings news from Citigroup,Bank of America and General.