The euro and British pound were finally able to make significant gains against the dollar, after a boost from global economic data. It seems that many forex trading investors are no longer in their risk aversion mode, as some have confidently decided to invest in other major currencies. The euro rose against the dollar after news came out that Chinese Premier Wen Jiabao will help boost investor confidence on the euro and the Euro zone economy, in general. As long as the euro doesn’t drop from the 1.2800 zone, a bullish momentum is expected and a long position is encouraged. In the end, the EUR/USD pair traded at a high of 1.2855 and 1.2662.

The British pound also rallied versus the dollar after the ADP Employer Services report in August came out better than expected. An optimistic outlook for the global economy prompted investors to buy other assets, such as the British currency, other than the dollar. Because of the downward trend of the pound starting August, the momentum is still bearish. The GBP/USD traded at low of 1.5336 and a high of 1.5491.

After keeping a strong rally, the Japanese yen now dropped against most forex majors. This is the effect of better manufacturing data in the US and China, encouraging investors to invest in stocks, commodities, and other assets with better yields. As such, the momentum for the USD/JPY pair is bearish. The USD/JPY marked a low of 83.66 and a high of 84.66.