[Erik]

US equities have followed the Dollar in making a punchy start to the
final trading day of the week. European equities are well off the pace
on worries about the UK housing market and concerns over growth in the
Eurozone, While American stock markets are doing well today, it is the
currency markets that are stealing most of the limelight. The EUR/ USD
pair finally broke below the 1.53/ 1.60 range that it has been trading
within since the Euro's run up in February. The Euro slumped the most in
more than four years against the Dollar, falling to nearly 1.50 for the
first time since February. The GBP/ USD also broke below the 1.93
support level significantly for the first time in 2008 as more bad news
about the UK economy hit the newswires. While a weak Euro has
contributed to the dramatic drop today, the real driver with both these
break outs has been the resurgent Dollar. After being punished for most
of the year, the Dollar index is now heading back up to the levels first
not seen for 7 months. It is unlikely that today's movements this will
dramatically alter the bleak outlook for the global economy, but there
has been a shift in sentiment that says this isn't just an American
problem, the UK and Eurozone are both waste deep with the tide rising.