The G7 meeting begins tomorrow. Take a look at how the EUR/USD traded after the G7 changed the currency portion of their communique.



Job losses are increasing, but that hasn’t stopped Americans from spending and unfortunately that pretty much sums up American culture. Retail sales increased 1 percent in the month of January despite a sharp increased in jobless claims (Instant Insight on Retail Sales). Consumers took advantage of sharp January discounts and the bankruptcy of Circuit City.

This pace of spending cannot be sustained and skepticism towards future spending has driven the EUR/USD below 1.28. Intraday EUR/USD support is at 1.2785.



Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.