The fourth time may be the charm for the euro which is once again trying to rise above 1.60.

The US dollar has rallied significantly against the Japanese yen and the euro as risk appetite returns to the market.

The euro hit an all time high of 1.5983 against the US dollar following better than expected trade balance numbers.  The strength faded quickly however when Eurogroup President Junker told the markets that they "did not correctly understand G7 message on FX" and he "does not consider the euro’s rise vs. dollar desirable."

Today, the euro-US dollar currency pair hit an all-time high and is inching ever so closer to that target.

The market is nonetheless pleased to see the weaker US dollar finally lead to some positives for the US economy.

The US dollar has strengthened against all of the majors but the degree of strength is marginal considering the changes in the language of the G7 statement and the better than expected retail sales report.

After a quiet start to the week, volatility has returned to the currency market. The moves that we have seen over the past two trading days are just a taste of what we expect for the week to come.

The US dollar hit a record low against the euro this morning and came within striking distance of 100 against the Japanese yen.

Although there was no meaningful US economic data released, the move in the dollar represents the pressure that the market expects to fall upon the greenback over the next 24 hours. The European Central Bank and the Bank of England have monetary policy announcements.

The dollar found little support from fundamentals Tuesday, but cross market currents helped to keep the currency elevated among the majors.