Fundamentally the consensus is the Euro is stronger than the Swiss Franc. The Euro rose on Wednesday on the thought that the European Central Bank may be getting ready to implement a tighter monetary policy. This conclusion was supported by comments from European Central Bank Executive Board member Juergen Stark who said an easy monetary policy can have negative effects.

The December Japanese Yen fell sharply overnight on speculation that Japanese authorities might have intervened again in the foreign exchange markets. Although Japanese Finance Minister Yoshihiko declined to comment on whether authorities intervened, Yen market players feel the Bank of Japan was active in the market.

The U.S. Dollar is trading better against the Euro and British Pound as Forex traders await today’s European Central Bank and Bank of England Policy statements. The Dollar is also gaining against the commodity-linked currencies, helped by lower gold and crude oil. Weaker equity markets are putting additional pressure on higher risk currencies while underpinning the lower yielding Japanese Yen.

The EUR USD is trading flat as Forex traders await this month’s European Central Bank policy decision. Investors are looking for the ECB to leave interest rates at the historically low 1% level. At the same time, the market will be looking for comments on the debt problems in Greece, Portugal and Spain. Expect the language of the report to be dovish in tone.