Few seem convinced about the Euro-zone escaping further repercussions. Even leaders and policy makers disagree on ‘the positive actions’ to be taken. Greece, technically, could be the smallest of all of the European economies problems, as other members begin to impose their own self-austerity plans. ‘Loose lips’ yesterday by the Greek’s PM has investors questioning the value of the EUR. The market needs a distraction, and seems to be shifting towards the Yuan ‘potential’ revalue.

For the past few months, all eyes have been on Greece and Dubai as the two countries struggle to deal with a growing debt crisis. Fears of insolvency have abated somewhat with recent, but vague, promises of support from other EU nations in the case of Greece, and the delivery of a massive bailout to Dubai from fellow United Arab Emirates nation, Abu Dhabi.

This new-found confidence has helped push emerging-market stocks to a six-week high. Commodities have also rebounded with a corresponding increase in the currencies of those nations exporting oil and metals.

Since most emerging market economies and financial markets are fairly small, their currencies are subject to the whims of international investors, moreso than is the case with major currencies. For that reason, when I research emerging market currencies as a whole, I often like to focus on what investors are saying are saying about their stocks and bonds.

Let’s face it there are too many distorting signals in the market right now. We have Juncker stating that ‘Greece will not be left alone’. However, Papandreou still has to convince both Merkel and Sarkozy over the next few days of Greeks austerity concerns and plans. We have the BOJ contemplating easing their monetary policy again. The Chinese Premier Wen ‘warned of latent risk in their banks and pledged to crack down on property speculation’.

Fed Beige Book shows improvement in 9 out of 12 districts

The U.S. economy is showing improvement, and that is providing a backdrop for a strong dollar in forex trading. Indeed, reports from the Fed's Beige Book show that 75% of the Fed districts are showing improvement. But enthusiasm is being held in check.