U.S. Dollar Consolidates Following the Rise in Global Equities

The USD had an inside day in Asian trading, attempting but failing to capitalize on the gains made in NY trading with rising Asian stock markets helping to underpin risk appetite which tempered USD gains. EUR-USD opened around 1.4200 and eased to lows of 1.4174 but remained above the NY lows of 1.4163 while GBP-USD opened around 1.6450 but despite a heavy tone on reports that UK banks would need more capital, failed to break under the NY lows of 1.6385 with lows limited to 1.6391. USD-JPY traded to session lows of 93.40 early in the session but remained above NY lows of 93.29 before bouncing back to 93.73 as the Nikkei rallied. U.S. Treasury yields bounced with the gains in Asian stocks. Crude futures eased slightly after the rise in API reserves but remained above $65. Another Chinese official reiterated calls for a steady USD and responsible U.S. fiscal and monetary policy but this had little impact on the market.