USD Enjoying an Indian Summer

With the Dow Jones Futures indicating a weaker North American opening, safe haven flows are rallying the dollar with the EURUSD now posting 1.4915( see chart) and the USDYEN testing 191.00.

Following the French supportive dollar comments yesterday, Trichet has further stated that a rising Euro could hamper sustainable Euro-zone growth.

The big story of the night was the GBPUSD which has blasted its way to 1.6570 realising a climb of over 200 pips. The release of the Bank of England minutes, was the driver for this action, as they showed an unanimously vote to both hold interest rates at their present level and to maintain the GBP asset purchase program.

There is a major risk event at 1.00pm EST when the Federal Reserve Beige Book will be released. Any dovish comments could add weight to the present decline of risk appetite providing another boost to the Dollar.