[ForexNews]

Buy the dips has been the mentality across most asset classes over the past few weeks. Markets have moved significantly in equities and USD weakness. Consolidation and slight retracement can be expected. However as we've seen up to this point, consolidation and retracement has laid the foundation for further breakouts in both equities and USD weakness. The Euro will be the focus today. Significant USD buying this morning drove the Euro down to 1.4071 and back up to 1.4100 within a matter of minutes. The GBP also participated in the move, trading down from 1.6360 to 1.6088. The ECB chose to keep rates on hold at 1% during today's meeting and chose not to hint at future rate cuts. German Chancellor Angela Merkel's words yesterday have put the ECB into a tight corner when it comes to future rate cuts. Today's initial jobless claims for the US will be key to providing additional support for a US recovery. The focus will be on the pace of job market deterioration.