Are The Yen Bears Afraid To Lose Face?

In capital markets, especially forex, the trend remains your friend, boring but true. Actively watching or participating in any consolidated range trade action can be rather tedious and the current state of play is no exception. The forex market is hoping that today's US Retail Sales data and a couple of significant Euro debt issues provide some extra 'food for thought' and act as catalyst to break the obvious.

Euro equity indexes are under pressure this morning, certainly a change-up of note, weighed by a series of disappointing earnings reports. There is an overriding sense in the market place that this one-directional asset class of late is due a correction following the recent 'global' record rally. There is copious amount of cash remaining on the sidelines and it will be interesting to see if price pressure encourages more investing to sustain the rally. If not, a change up with 'momentum' will certainly have an impact in forex.

Current EURO dynamics has the...