The EUR USD is trading low and giving back some of yesterday’s gains after it was reported that the ZEW indicator of German economic sentiment fell sharply in September to -4.3 from 14 in August. Pre-report economist guesses were for a drop in the index to 9.0.

U.S. stock index futures are called slightly higher on Wednesday ahead of the release of the Federal Reserve’s Beige Book later today, but investors will remain focused on developments in European debt markets and jittery over European bank concerns.

The U.S. Dollar is strengthening this morning after the Bank of Japan decided to invoke an emergency easing plan. The BoJ avoided an intervention but instead decided to provide liquidity in an attempt to weaken its currency. The plan includes expanding its current 20 trillion Yen quantitative easing program to six-months from its current three-month time frame.

The USD JPY got a boost today because of the strong rally in the U.S. equity markets. A combination of friendly events fueled today’s rally which began overnight after European and Asian traders set out to satisfy their appetites for risk by supporting equities.