Following the agreement yesterday by EU leaders to create a a fiscal treaty in an attempt to avoid and ward off future debt crises the EUR improved slightly against the USD, moving up above the 1.3200 level before retreating on late profit taking by traders.

Today sees the release of the monthly US Non-Farm Employment Report, scheduled to be released at 1.15pm GMT.  Analysts are predicting a somewhat improved figure which could give strength to the USD and see it move up against other major currencies.

Yesterday saw the USD slip further agains majot currency rivals following the seemingly positive news out of Europe regarding a fiscal budget agreement (despite the fact that the UK and Czech governments rejected and refused to sign in.

For a short time the EUR/USD moved above 1.3200 while at the same time the GBP/USD came close to 1.5800 before correcting in a downward move towards the end of the day. the USD was relatively unmoved against the recently safe Japanese Yen

Analysts today are predicting potentially heavy volatility as a number of economic indicators are released to the market.  Specifically, traders should take care to monitor the ADP Non-Farm Employment Change figure due to be released just after 1pm GMP.  The ADP figure is often seen as a prelude to the much more significant Non-Farm Employment Change report expected on Friday.  The Non-Farm Payroll is generally perceived as a strong indication of the current employment and subsequent economic climate in America.

In commodity news, the usually volatile Crude Oil did not fail to disapoint amidst the round mix of positive and negative news coming out from Europe  Oil saw a signifcant 150 pips rise during trading taking the market price again over $100 a barrel level.