A report out of China showed their economy expanded at 8.9% which was less than most expectations and resulted in a wave of profit-taking in Asian share markets overnight. True to the inverse relationship of equity prices and the U.S. dollar, the Greenback rallied from yearly lows that it suffered in yesterday's European and U.S. trading. The Asian equity sell-off has spread to European share markets which, in early European trading, are broadly lower. The lower share prices along with technical data indicating an extremely oversold dollar against most majors and commodity currencies indicates a possible dollar rally through the end of this week's trading.

Important economic reports for today are: U.S. Jobless Claims at 14:30 CET and U.S. Leading Indicators due at 16:00 CET.

by Steve Nigg

Intraday Market Outlook for Day Traders

EUR / USD
After the EUR / USD achieved its goal of 1.5000 and reached a high of 1.5046 yesterday, we saw a selloff in late European and early U.S. trading as traders took profit. Currently trading at 1.4965, we expect prices to test support at 1.4880-1.4890 during today's trading.

GBP / USD
The pound fell in early European trading after disappointing U.K. retail sales were reported. Currently trading at 1.6531, we see important support at 1.6350 which may be reached in today's or tomorrow's trading. The GBP / USD is presently oversold in the short-term and we expect a minor correction to around 1.6580 where we will consider entering into a short position in today's trading for a goal of 1.6470.