U.S. Sees GDP Revision from 2009 Quarter 4

The U.S. government revised the GDP numbers from Quarter 4 of 2009 down to 5.6% from 5.9%. However, that change isn't enough to affect the largely positive sentiment out there that is offering some risk appetite.

Indeed, with gold prices higher, and with euro zone members coming to an agreement on how to proceed with a Greek bailout, it is little surprise that the euro is seeing some gains against the U.S. dollar in forex trading.

The gains, however, are not that big, since forex traders are waiting to see how the Greek drama plays out. The circumstances for helping Greece are very specific, and it remains to be seen how things will play out if the situation worsens.

Sterling Sees Gains in Currency Trading

Sterling is seeing gains in currency trading on the FX market this morning, thanks to some favorable data, and the fact that there is a bit of a return to risk appetite today.

Indeed, riskier currencies are heading higher, with the U.S. dollar pulling back a bit as forex traders look for higher yields. In forex trading, the U.K. pound is also getting some help from the fact that the fundamentals are improving, and traders are realizing that sterling might have been oversold.

GFT's Boris Schlossberg reports in FX360 on the sterling in currency trading:

In UK the mortgage lending numbers printed at 2.1B versus 1.8 Billion eyed, the strongest increase since December of 2008. The news helped to boost cable above 1.5000 in early London trade but the pair could not hold that level as profit taking kicked in. Still, sterling is ripe for a short covering rally given the improved fundamental data over the past several weeks and the very bearish positioning skew in the currency.

U.S. Economic Data to Be Released

Important economic data is due to be released today -- data that is likely to affect the currency market. Yesterday, news of consumer spending increases in February helped boost the stock market and risk appetite in forex trading.

FX Street reports on what is expected from the economic data to be released today:

Today, housing data will be released from the world's leading economy and is forecasted to show slight signs of enhancement as the housing sector continues to recover from the crisis but at a slow pace, whereas consumer's sentiment regarding overall current economical conditions may have improved throughout this month.

There is speculation that the U.S. dollar weaken on news of recovery as forex traders and investors look for higher yielding assets. Risk appetite is likely to increase on the currency market, reducing the need for the U.S. dollar as a safe haven.