Market Today With ForexGen

After gapping down more than 100 points on Sunday night following the change in the G7 Statement the EURUSD erased most of its losses on the back of some bargain hunting and better than expected EZ Industrial Production data. The battle in the currency market continues to revolve around two key themes- decoupling and spillover. Euro bulls have consistently claimed that the EZ economy has separated itself from the troubles in US allowing the ECB to remain staunchly hawkish. So far they have been completely correct and the unit has benefited greatly from its interest rate advantage over the greenback which continues to expand.