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The Japanese yen slumped for a 5th consecutive day against the U.S. Dollar on Wednesday, as U.S. two-year Treasuries reached a spread over Japanese bonds that was the highest in six months. The Dollar was increasingly buoyed by more positive news in the U.S. housing sector, showing existing home sales driving up at the fastest clip in 2 years, which worked in lockstep with gains on U.S. Treasury yields to push the greenback up another %0.75 percent in the USD/JPY currency pair. Hitting above the psychologically key 80.00 yen mark, the dollar reached a daily high of 80.42 yen before slipping back just slightly to 80.33. Aided by the fallout from the Bank of Japan’s intervention in currency markets last week, as well as a decreased outlook for growth and exporting in Japan, almost every major currency made forward progress against the yen today, with the Euro rising %0.85 percent to 106.43 yen, and the Swiss Franc gaining nearly a full percent to hit 88.25.

The British Pound also suffered heavy losses today, as the Bank of England meeting minutes released today showed that a pair of Monetary Policy Committee Members had worked towards adding a further 75 billion pounds to their quantitative easing program versus the 50 billion called for by their peers. The market realization that some U.K. MPC members had worked towards adding even more stimulus to the economy in light of analyst’s predictions that  the scope of monetary infusion would actually be reduced should find the Pound lacking support through the rest of the week to come. Against the Euro, Sterling declined three-quarters of a percentage point to EUR/GBP=0.8451, off 62 pips on the day as a whole. While the Pound traded almost flat against the Japanese yen, it suffered losses in cable falling to GBP/USD=1.5680 (down 100 pips), and plummeted 129 pips on the day against the Swiss Franc (GBP/CHF=1.4268).

The Swiss Franc, in rare form, advanced against all its major currency counterparts today, as Euro-area data showed that increasingly the region is in danger of slipping into recession. Both the services and manufacturing sector for the region were shown to be in decline, and the purchasing managers’ indices for Germany and France, the most powerful economies in the EU, showed weak activity for the core producers of the Euro-zone. As such, and despite the Euro’s ascent riding the positivity of the Greek bailout deal, the Swiss Franc returned to being the safe-haven currency of choice on Wednesday, rising %0.20 against the U.S. Dollar (USD/CHF=0.9105), and making solid gains against the Japanese yen to the tune of a %0.93 rise (CHF/JPY=88.22, up 83 pips). With market indicators looking poor for the Euro to be supported much longer once the hangover from the Greek bailout wears off, and with global economic growth looking to be hampered by increasing oil prices as well as slower growth in China, the Swiss Franc’s decline in currency markets appears to be coming to an end despite the Swiss National Banks’ best efforts to peg the safe-haven currency against the Euro over the past few months. Expect the Swissie to be an increasingly good long-term bet this year as the outlook for global growth looks increasingly less optimistic.

The overnight passing of a Greek bailout package by European Union finance ministers sent the Euro climbing  on Tuesday, as investors shed their short positions against the reserve currency which boosted the mark against almost all of its currency counterparts. While hitting a 3-month high against the safe-haven Japanese yen at 106.025 and making a small gain against the U.S. Dollar (last at $1.3259, up 15 pips overall on the day), the Euro showed its biggest gains against higher yielding currencies such as the Australian, New Zealand and Canadian Dollars.

Making solid gains against the Aussie and Kiwi (Australian and New Zealand dollars respectively), in the AUD/EUR pair the Aussie fell %0.73 percent to 0.8062 Euros while in the NZD/EUR pair, the Kiwi has matched similar losses, posting a drop of %0.70 to 0.6300 Euros. The two higher-yielding currencies were collectively dragged down as Australian policy makers “judged that if demand conditions were to weaken materially, the inflation outlook would provide scope for a further easing in monetary policy.” With China recently indicating potential for slower growth in 2012 weighed by an overheating housing sector, the outlook for any further interest rate increases for the export-dependent economies of Australia and New Zealand look to be limited, which may further increase a bearish outlook on the Aussie and Kiwi.

Against the Canadian Dollar, or Loonie, the Euro made slightly more modest gains, rising %0.27 to CAD $1.3195. The Loonie remains supported by increasing oil prices due to turmoil in the Middle East, and despite its losses across the Euro, U.S Dollar and Japanese yen today, it’s showed resilience against it’s growth-based counterparts, rising %0.50 against the Australian Dollar (AUD/CAD=1.0632) and %0.42 against the New Zealand Dollar (NZD/CAD=0.8310). As the Loonie remains supported by a stable economy and little economic data flows from Canada for the remainder of the week, expect the Canadian Dollar to flow on risk appetite for the next few trading days, and continue to make gains against the higher-yielding Aussie and Kiwi.

Aside from gains against the Aussie and Kiwi today, the British Pound also tumbled across the currency trading board, as public sector borrowing increased and the British economy continued to show stifled efforts to curtail spending and lower the national debt burden. With the Bank of England releasing meeting minutes tomorrow, further negative comments as to the state of the U.K. economy may work to pull the pound down farther, especially against the Euro which has seen a relatively cautious advance despite overcoming a major hurdle with Greece’s bailout approval. On the day Sterling has fallen off %0.43 against the U.S. Dollar (GPB/USD=$1.5782), and is similarly down against the Euro (off %0.42, EUR/GBP=0.8391).

Looking ahead to tomorrow, expect trading in Euros to be increased as Purchasing Managers Indices’ are released for France, Germany and the EU as a whole, which could give a good indication of the economic conditions across the region. Slight contraction is expected for the EU area, so any indication of better-than-expected data could work to push the Euro over the psychologically-key $1.33 mark, and send the Euro higher on the week as a whole. Falling figures meanwhile could increase the short selling bids on the Euro, which have been piling up due to the Greek debt crisis, and would serve to push the greenback higher tomorrow. Of interest in the U.S. as well, stay focused on the release of existing home sales, which are expected to make modest gains in line with recent improvement in U.S. housing starts for January. A better than expected reading, combined with further signs of contraction for the EU area could quickly erase today’s gains for the Euro, and continue to support long positions on the reserve currency for some time to come.

The Euro edged slightly higher against the U.S. Dollar on Friday, as increased optimism towards the upcoming vote by EU finance ministers set for Monday worked to ease the negative pressure on the common currency. Though forex trading from the European to the North American sessions witnessed the Euro see-sawing on concerns that a European Central Bank swap of existing Greek bonds for newer ones could trigger ratings cuts, but also bolstered by the potential for a Greek aid package to be pushed through as early as next week, the overriding factor in markets today was the surge in U.S. growth outlook, and improving equities and commodities markets, which pushed risk appetite higher to close out the week.

On the improved risk sentiment, the Japanese yen tumbled as safe-haven bets were unwound, sending the Asian currency down against all major currency counterparts. Against the Euro, the yen hit a two-month low at 104.51 in EUR/JPY (down %0.83), while against the U.S. Dollar, the yen fell to another 4-month trough of 79.44 yen, a net change of %0.64. As demand for higher-yielding assets flooded FX trading today, the British Pound, as well as the Australian, New Zealand and Canadian Dollars all took sizeable gains over the yen, each advancing by at least 3/4 of a percent on the day.

The U.S. Dollar, aside from joining in on the run against the yen on Friday, was broadly down against major currency counterparts, as investors moved out of the safe-haven denomination. However, into midday in the North American session, with traders preparing for a three-day weekend in the U.S. with markets closed on Monday and a looming vote on the Greek bailout package ahead, the greenback has traded relatively flat as positions are being shored up ahead of any decision by EU finance ministers early next week.

While the dollar fell slightly against the Euro overall (down %0.16 on the day to $1.3154), the reserve currency looks to be in a good position heading into next week, supported by recent economic data showing improved outlook for the world’s largest economy including good jobs information and factory activity, as well as a lower-than-expected rise in cost of living. Though a deal for the passage of the bailout package for Greece could find the Euro heavily supported next week with the common currency set by analysts to advance to the $1.33-34 range, the longer term outlook for the U.S. dollar versus the Euro is appealing, as the economic fundamentals for the U.S. far outweighs those of the EU-area.

After initially falling in European trading sessions on Thursday, the Euro pared its losses as a slew of positive U.S. Economic activity worked to move investment out of safe-haven bets, and into higher yielding assets. Falling to a fresh monthly lows at $1.2974 in EUR/USD as skepticism over the Greek bailout plan continued to cast a shadow over the Euro, the common currency made a recovery during North American trading, as U.S. jobless claims fell to a four-year low, and housing starts improved, giving investors confidence to move capital back into Euros. Though the Dollar fell %0.31 to see the Euro trade at $1.3106, and also fell back %0.62 to $1.5791 against the British Pound in GBP/USD, the good economic news also sparked a rally away from the Japanese Yen, sending the U.S. Dollar back to its highest level since last October, up %0.50 on the day to 78.30 yen.

The Canadian Dollar continued to rally on rising oil prices for the third consecutive day, spurned by supply worries around Iran, who has indicated they will cut exports to Europe in response to upcoming sanctions levied against them. The Loonie surged alongside the U.S. Dollar versus the safe-haven Japanese Yen, reaching a high of 79.175 yen, with a current trading level at 79.125 (up %0.85 on the day). Against the greenback, the Loonie remains up on the day to 0.9967 U.S. Dollars, for an overall %0.31 rise.

Riding on U.S. optimism today as well as improved domestic consumer confidence, the British Pound was one of today’s bright spots in online foreign currency trading, making gains against all major currency counterparts aside from the Euro. Sterling was able to extend major gains against the yen, advancing %1.16 on the day to hit 124.5170 yen, and also took a hefty chunk out of the New Zealand Dollar, gaining roughly 130 pips on the day (%0.70) to 1.8974 Kiwis.

The biggest questions looming over currency markets for the foreseeable future however remain the focus on the Greek bailout, as well as the Greek government’s ability to convince EU-ministers its capable of initiating lasting austerity measures. Despite the North American session giving European currencies a break from an overall bearish view, the longer the aid package goes without final approval, and the more key European nations offer their pessimism on Greek repayment, the more likely it will be that the Euro, as well as the Pound and the Swiss Franc, will suffer as a result. While few expect that the Greek’s will be forced into default and subsequent drop-out from the EU, with an upcoming debt payment of 14.5 billion Euro due on March 20th, if a deal is not reached by next week, many analysts are pointing towards a major fall-off in the Euro, perhaps as far back as the lows hit in January in EUR/USD at $1.2624.

The Euro made solid gains against the U.S. Dollar on Wednesday across European foreign exchange trading, initially buoyed by the prospects of increased investment from China in the EU’s bailout fund. With China stating that it would continue investing in euro zone debt, relinquishing some of its mostly U.S. held foreign exchange reserves to diversify its $3.18 trillion dollar foreign debt holdings, the Euro was able to weather the storm of sagging GDP figures for the region, to trade upwards against most major counterparts throughout the European trading day. However, with the weight of the Greek bailout situation looking to be likely dragged out for an extended period of time, by North American trading hours the Euro had pared all gains made earlier in the forex trading session and currently sits down %0.35 in EUR/USD at $1.3088.

After yesterday’s surprise intervention by the Bank of Japan in currency markets sent the yen tumbling against its major counterparts, today’s trading session saw the yen pare some of those losses, as both the Euro and the U.S. Dollar fell against the safe-haven Asian denomination through the early North American trading hours. Presently, the Euro is down %0.60 in EUR/JPY to 102.3950 yen after an open just slightly above 103, and the U.S. Dollar rests slightly off at a quarter percent loss to 78.24 yen, from 78.43. As we have seen before with Japanese intervention, the market’s snap reaction to knock down the yen may be short lived, especially with the focus in Europe fully wrapped around Greek debt and concerns over a still-looming potential for Greece to default. If investors ignore the BOJ’s move and continue to seek out safe-haven bets for the duration of talks over the EU’s handling of the Greek financial crisis, any moves by Japan could be quickly erased. As quoted in Bloomberg News Service today, Thomas Molloy, chief dealer at FX Solutions stated that, “There’s a lot of posturing going on in the euro zone. There is a lot of market speculation in the background that a lot of officials outside of Greece are trying to get Greece to just pull out of the euro zone.” On further word today that the aid package for Greece could be delayed up until Greek elections in April, a protracted battle over the bailout with shifting requirements for debt payback and pinching austerity measures could hamper the Euro’s ability to break out of its ranges against the U.S. Dollar and the Japanese yen specifically, as traders may seek to shore up safe-haven bets to weather the lingering European debt storm.

Meanwhile today Canada’s dollar, the Loonie, advanced for a third consecutive session in USD/CAD, gaining 0.26 percent to 99.65 cents per U.S. Dollar on the back of continually advancing crude oil prices. With Iran showing preemptive movement against Europe’s proposed oil embargo by cutting supply to many EU countries, crude advanced 0.4 percent to $101.35 per barrel in New York, sending the Loonie upwards. Oil is Canada’s largest export, and the Canadian Dollar could be well set up as an alternative safe-haven bet behind it’s natural resources, steady economic activity, and proximity to the U.S. economy, which continues to show signs of slow but nonetheless positive growth. That growth was indicated today by expanded manufacturing in the New York region in February, which grew at the fastest pace since June 2010. Positive economic news for the U.S. compounded by turmoil in Europe and/or advancing oil prices generally results in positive movement for the Loonie across most currency trading counterparts.

In other economic news, New Zealand’s dollar, the Kiwi, made gains across the board for a second consecutive day after the New Zealand government said retail sales surged 2.2 percent in the 4th quarter of 2011. With analysts predicting sales to climb at 1.2 percent, the additional gains for sales translated into additional currency gains for the Kiwi, which rose to a 6-month high against the yen up %0.36 in NZD/JPY to 65.6370 from 65.4050. Against the U.S. Dollar, it gained %0.46 on the day to present time, hitting 0.8377 from 0.8336. Making its biggest gains of the day against European notes however, the Kiwi jumped %0.88 versus the Euro, and %0.84 against the Swiss Franc, pushing up by 140 pips against the common currency and may likely continue to be boosted by China’s involvement in the European bailout fund (as China is one of New Zealand’s largest trading partners).

The yen took a nose dive in Tuesday’s forex trading session, reaching a three-month low point versus the U.S. dollar after the Bank of Japan surprisingly made indications that it would be increasing its asset purchasing to in effect lower demand for its safe-haven denomination. Dropping %1.2 on the day to a trough at 78.46 yen to the dollar, the addition of 10 trillion yen ($128 billion) to the BOJ’s asset purchase program, combined with lower than expected retail sales in the U.S. and more pessimism over the Greek bailout deal in Europe to stoke the safe-haven fires of the greenback once again. Though as of yesterday it appeared as though risk sentiment was improving throughout the forex marketplace, today’s surprise move by Japan certainly reversed the course of investment in a hurry, and now has traders sticking to safe-haven guns for the time being.

Thus, the U.S. dollar was able to move forward at its quickest pace against 16 of its major counterparts, with the Dollar index (tracking the greenback against the United States’ 6 biggest trading partners) printing up 0.6 percent to 79.609. Though retail sales in the U.S. failed to meet a target of 0.7 percent growth (instead showing 0.4 percent), the added pressure on the marketplace from Japan, along with a slew of recent downgrades from Moody’s on European nations helped push the safe haven reserve currency higher, advancing to its biggest gain this month against the Euro. With the Euro falling from late Monday’s mark of just over $1.32 to shed over 100 pips to hit a daily low at $1.3094, renewed short selling pressure is back on the common currency for the remainder of the week, especially as it appears the Greek bailout deal has reached a hiccup as of today, with EU-area finance ministers postponing a critical meeting today. It’s being reported by the Financial Times that Germany, along with additional European nations unnamed, may be balking a bit at the approval for the Greek bailout package, which may run as high as $190 billion before the final discussions are worked out.  As the outlook on Europe suffered a major setback today, despite positive bond auctions once again in Spain and Italy and an improve ZEW survey of German investor expectations, the fact that Greece still remains a large issue for the region, and a number of downgrades took place today indicates that the Euro’s ability to surge any higher than $1.30 in EUR/USD may be limited for some time to come.

Also taking a hit today in currency markets were the higher-yielding denominations, including the Australian and New Zealand Dollars, as well as the British Pound which was also weighed down amidst a negative outlook from Moody’s ratings agency. The Canadian Dollar on the other hand was able to weather the storm riding increased oil prices, as continued fears over middle eastern turmoil sent crude to a three-week high. With oil being Canada’s chief export, the Loonie was able to avoid the run to safety, securing a 1 percent gain against the falling yen, and beating out the Euro and Pound on EU-area concern.

Looking ahead for currency trading tomorrow, the economic calendar remains somewhat laden with bits and pieces to keep track of. In the U.S. the Federal Reserve releases meeting minutes from the FOMC’s January 24-25th meeting, which could indicate further the direction of the U.S. economy, and the Fed’s plan for any additional measures to prop up key sectors. In Britain, the Bank of England inflation report is again something worth watching and trading alongside, as it could also be another indicator of whether more quantitative easing is in store for the U.K. to come. For the Euro-zone, 4th quarter GDP figures are due out as well for Germany, France and Italy, and with analysts expecting decreased production across the board, any missed targets that show even further slowing will only compound selling pressure on the Euro for Wednesday.

Sunday’s parliamentary vote by Greece, approving austerity measures necessary for securing a 2nd bailout from the European Central Bank and the International Monetary Fund, stoked the fires of national unrest at home but also sent a surge of risk appetite back into foreign exchange markets on Monday. While protesters hurled Molotov cocktails at police in protest of the Greek government’s plan to curtail unsustainable government spending and national debt via painful spending cuts, markets reacted much more positively to the news that will, for the time being, keep Greece away from defaulting on their debt and stabilize the European Union. While forex trading remained flat for the Euro on Monday, which stood firm and almost unchanged through the day ($1.3203 in EUR/USD from opening at $1.3209), and safe-haven denominations including the U.S. Dollar, Japanese Yen and Swiss Franc traded tightly with one another, the passing of the first hurdle in avoiding default for the EU’s most fiscally irresponsible member was met with optimism by investors, who bought up higher-yielding assets across the board.

While the Euro, U.S. Dollar, Yen and Swiss Franc all tread water in relation to one another in forex markets today, the Australian, New Zealand and Canadian Dollars all surged forward into the new week, gaining steam from the market reaction to Greece avoiding default for a little while longer. Though it’s still very much yet to be seen where Greece’s fiscal troubles will lead them, and its likely that with the financial damage they’ve done recovery will take years, for the near term the positive news of the Greek government simply doing anything progressive was met with a push away from safe-haven bets in forex markets. As stock markets also moved forward on the day, and commodities prices pushed north, the growth-based and exporting-led denominations played the major role in trades today, with the New Zealand Kiwi leading the way with the largest intra-day gain against the U.S. Dollar (up %0.76 to 0.8353, from 0.8291 at day’s open). In lockstep with the Kiwi was the Australian Dollar, or Aussie, which advanced %0.56 in the AUD/USD pair to the present time, but gained as much as 92 pips from open to its highest peak on the day at 1.0781. Though not experiencing quite the gain as its other higher-yielding partners, the Canadian Dollar advanced mildly against the greenback up %0.23 on the day, and could be in for steady, modest gains throughout the week investors and analysts prepare for a bearish run against the U.S. denomination. While the Euro appears to be somewhat capped for the near term in its ability to surge higher in forex trading, as does the U.S. Dollar, the relative stability in the EU-area combined with improving global economic growth look to spell good times for higher-yielding assets to come.

Looking ahead on the economic calendar for Tuesday, one key instance to watch for is the Bank of Japan’s rate decision, which should provide some feel for what finance minister Jun Azumi plans to do with regards to the yen’s ascent and its negative impact on Japanese exporters. Intervention in currency markets is certainly not off the table, especially with Japan posting a recent trade deficit after a brutal year mired by a devastating tsunami, and exporters suffering heavy losses due to the yen’s safe-haven rise. Also on the calendar for tomorrow is a slew of European data, starting with a number of releases for the U.K., including a closely watched consumer price index and retail prices which should put a gauge on inflation for the island nation. In the Euro-area as well, the German ZEW survey of economic sentiment comes out as well, which should continue to show improving conditions for the region’s largest economy. However, with industrial production for the EU-area expected to fall by as much as %1.2, we’ll have to watch closely as to whether positive German news can outweigh a broader look at slowing growth for the region as a whole. However, with investors riding a tide of good feeling after the movements by Greece to avoid falling out of the EU and into default, economic indicators may not serve to put as much pressure in forex trading as it would have last week with Greek flip-flopping on its desire to accept tighter financial standards. Lastly for the economic calendar tomorrow, U.S data comes pouring in with retail sales figures due out. A positive reading should do more to support risk sentiment than boost the dollar however, especially as the greenback has been propped up as the safe-haven of choice against EU concerns, and combined with good or expected figures from Europe, we could see a second consecutive day of runs towards higher yielding assets to come.

After reaching a high this week in EUR/USD not seen since last December at $1.3294, the Euro suffered a setback on Friday as Euro-zone finance ministers stalled on approval of a bailout package for Greece, sending investors running for safe-haven bets like the U.S. Dollar and the Japanese Yen. In the flight away from risk today as well, the Australian, New Zealand and Canadian Dollars also fell, down markedly against the greenback and yen in lockstep with the Euro. With the return to safety, the U.S. reserve currency gained against almost all of its major currency counterparts, with the Dollar Index rising by %0.52 on the day thus far, and posted early gains to the tune of %0.73 against the common currency Euro, up to $1.3190, or 95 pips from the morning opening at $1.3285.

With forex traders opting for the safety of both the U.S. Dollar and the Yen today, the USD/JPY currency pair continued to trade relatively flat as the dollar fell just slight to 77.59 yen from 77.66 yen at the start of today’s forex trading session. However, both currencies separately too heavy chunks out of the most heavily traded growth-based currencies such as the Australian Dollar, which floundered amidst a dovish outlook to the Reserve Bank of Australia’s quarterly monetary policy statement, which predicted growth at %3.5 versus an earlier November target of %4. That, combined with a decision by the Australia and New Zealand Bank Ltd. to hike variable mortgage rates separate from the central bank, put heavy selling pressure on the Aussie today, with it falling by 1 percent on the day in AUD/USD to $1.0678 (off an open of 1.0786), and 1.07 percent in AUD/JPY to 82.8695 (off today’s open at 83.7665). Despite suffering losses over growth concerns, the higher-yielding currencies like the Aussie, Kiwi and Loonie continue to look like good bets in forex trading over the longer term, as global growth continues to stabilize and volatility in forex markets continues to fall. Particularly with the U.S. showing consistently improving figures across labor markets, manufacturing and housing sectors, the tide of investment in currencies will continue to prop up the growth-based denominations, so long as heavier subject matter, such as European debt-related issues don’t work to push out gains made.

As seen today, pressure from the Greek deal continues to effect the Euro in foreign currency trading, and thus risk appetite as well which in turn puts downward pressure on higher yielding assets.  Risk sentiment was certainly dealt a setback today as the leader of one of Greece’s minority party said their side would refuse to back recently proposed austerity measures, which are necessary for Greece to secure a bailout package set up by EU finance ministers. As the Greek government continues to labor over the best possible course to cutting their debt burden and getting approval for the $171 Billion aid package, the Euro now finds itself under heavier short selling pressure, with the market having mostly priced in a Greek agreement on a bailout and looking to focus elsewhere on EU-area economy. While the public eye lingers over Greece for an extended period of time, the rally of the Euro, up 4.4 percent against the greenback from a January low of $1.2624, could be reaching its apex for the near term, and could apply selling pressure on those higher-yielding denominations in conjunction with its decline. That said, with Greece facing a do-or-die situation of default by March if parliament doesn’t agree to austerity measures during their weekend session on Sunday, chances look pretty likely that while unpopular, Greece will agree and accept their second bailout from the International Monetary Fund and the European Central Bank. If that goes through, and if Europe approves the aid package on a February 15th vote coming up next week, the Euro will be primed for a return to market flotation based on economic activity alone, rather than on anxious speculation regarding one of the EU’s smallest members.

The Dollar fell for the first time this week as European manufacturing data beat expectations, Spanish and Italian bonds fell, and risk appetite surged back into the forefront of forex trading on Wednesday. As indicated by a significant fall in ICE Dollar index (down %0.61 on the day), which tracks the greenback against six major currency counterparts, the reserve currency dropped against a total 14 of 16 currency peers as a number of positive figures from Europe as well as China helped to boost risk sentiment, and lead investors away from the safety of the Dollar today.

The Euro led the climb out of its recent trough to trade over 100 pips higher in EUR/USD, touching a daily high of $1.3220, before easing back to settle at the current $1.3188 (up %0.80). Led by an increase in the purchasing managers’ indices of manufacturing output across the EU’s largest economies, the Euro made positive strides against almost all its forex pairs, save for the growth-based currencies including the Australian and New Zealand Dollars, which surged even higher on risk taking and on positive data out of China’s economy. Adding into the European mix of positivity was a very positive PMI reading from Great Britain, which printed at 52.1 from 50.0, indicating much improved growth (a figure of above 50 shows expansion in a given sector, below 50 shows contraction). While the Euro was subdued against its European currency cousins such as the Pound and the Swiss Franc (up %0.28 vs. Sterling, %0.07 vs. the Swissie), it moved markedly forward against the other safe-haven denomination, the Japanese yen (up %.081 to 100.600 yen per Euro) and edged higher against the higher-yielding Canadian Dollar (up %.032), which was set back as investors opted for Asian currencies more associated with positive Chinese economic growth.

The overall performance of PMI surveys around the world today gave investors plenty of reason to buy up higher-yielding assets, including the Aussie, Kiwi and Loonie, as from the EU-area to the U.S. and China, manufacturing rose and beat market expectations across the board. Chinese PMI printed just slightly higher at 50.5 for January versus 50.3 for December, but the U.S. figures remained the most positive on the day, as the Institute for Supply Management’s (ISM) manufacturing index gained a full point from 53.1 to 54.1, the biggest month-on-month increase in half a year. Also, the U.S. economy showed an addition of 170,000 jobs in January, which while smaller than the expected 292,000 jobs analysts had predicted, still pointed to signs of a growing economy.

With an ease away from safe-haven bets, both the U.S. Dollar as well as the Japanese yen suffered setbacks nearly across the board, however the positive economic figures for the United States certainly points to the strong possibility of added strength for the greenback to come. While the yen remains a safe-haven denomination, its recent plunge into a trade deficit due to the effects of last year’s tsunami, as well as continuing struggles for the Japanese economy to regain its footing in the global marketplace leaves it especially vulnerable during jumps into risk taking. In the Dollar’s case, with a stabilizing economy looking to see slow growth through 2012, even against the Euro, which gained 1 percent on the dollar in the last month, it appears to have the upper hand as still many questions surround the EU’s ability to support its most indebted countries, and set a path for growth to come.