[/caption] € The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3935 level and was supported around the $1.3850 level. The common currency followed U.S. equities markets higher as increased risk demand jumped on speculation the global economic recovery will continue. Dealers also lifted the common currency as it was reported that EMU-16 PMI improved to 52.4 in January from 51.6 in December, following Germany's lead with its PMI improvement to 53.7. A draft copy of the upcoming Group of Seven communiqué reports "Market volatility, in particular in the foreign exchange market, could destabilize the nascent global recovery by placing growth on an unbalanced path and trigger unwelcome protectionist reactions." G7 finance ministers will convene in northern Canada in early February and two hot topics are expected to be exit strategies from the provision of global stimulus and China's currency. ECB President Trichet this weekend said policymakers "will do whatever is necessary to give all our citizens…price stability." Trichet also noted U.S. policymakers have reassured him that they favour a strong U.S. dollar. In U.S. news, President Obama released details of his latest US$ 3.8 trillion budget today and it calls for a broad US$ 1.9 trillion tax increase by returning to pre-2001 ordinary income tax rate [...] Forex trading - live day trading course and currency trade room.
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