[ForexNews]

The combination of strong growth news, benign inflation data and accommodative monetary policy stances from key central banks continues to support the price action in risky assets with US equity prices posting strong gains last night and European/Asian bourses following suit this morning. Cross asset correlations remained strong with the USD coming under further substantial pressure and the EUR/$ rallying above 1.47. Commentary from Japanese policy makers indicating that they are not eager to curb JPY strength hurt USD/JPY even further. Yesterday, US CPI came in slightly higher than expected due to a much smaller effect of the cash for clunkers program and a higher impact of energy prices. Current account deficit was a bit larger than expected, although continued to narrow in Q2.