The British Pound rebounded against the Dollar after recovering from a sharp sell-off on Tuesday into a key 50% price level at 1.5974. Additional support was provided by an uptrending Gann angle at 1.5950.

The stronger U.S. Dollar is putting pressure on December Gold overnight. Long traders began taking profits in gold on Friday following a turnaround in the Greenback, triggered by conservative comments from Fed Chairman Bernanke regarding quantitative easing.

Stock indices extended their gains on Monday boosted by a strong outlook for the global economy. In the meantime, the outlook for the U.S. recovery weakened as July PMI fell and Fed Chairman Bernanke expressed his concerns for labor and housing.

U.S. equity markets surged to the upside, taking back most of Wednesday’s loss as signs of a global economic recovery helped drive up demand for higher risk assets.

Better than expected housing data and earnings reports also contributed to today’s rally, but the majority of the buying was done overnight by aggressive Asian and European buyers.