• Let’s Keep The party Going!
• Euro/dollar Eases But Remains Flat
• Beware The Runaway Train

U.S. stocks have opened higher today, buoyed by official figures showing the domestic labour market did better than predicted. Forex traders will also be aware of the mood of expectation surrounding the Federal Reserve's statement on the economy and the possibility of a new round of stimulus. US manufacturing activity continued to contract in July.

Thus, many market watchers are of a mind that Bernanke and his Fed brethren are ready to demonstrate readiness to support a generally sluggish U.S. economy, but pull back from embarking on more aggressive measures, at least for the month of August.

With the Fed statement coming just one day before a crucial meeting of the European Central Bank, it seems everyone is on tenterhooks, with equity markets held together by easy money.

“If we don't get more of it <easy money> soon we are likely to be disappointed," said Jack Ablin, chief investment officer, Harris Private Bank in Chicago, who added: "We are going to need a monetary booster shot both from Europe and the U.S. to keep this party going."

Fuelling speculation last week, the S&P 500 posted its biggest two-day percentage gain of the year to close out on increased expectations that the Fed and the European Central Bank will divulge additional stimulus measures for their respective economies. However, the index has stalled over the prior two sessions as it reached levels not seen since early May.

At the time of writing, follow a flat morning across the world stock markets, the FTSE 100, S&P 500, CAC and Dow have ticked up, leaving the Nasdaq, DAX, IBEX and MIB bumping downwards in their wake.

On the currency markets, along with global share prices, the euro has held steady today as investors continue their Central Banks vigil. One person who appears to be happier than one might imagine he has a cause to be is Mario Monti. The Italian prime minister was a very happy chap indeed this morning in an interview with Italian state radio RAI. Describing his country’s – and that of the euro zone’s – debt crisis as a tunnel, Mr Monti reckons he sees “...some light is appearing at the end of the tunnel. We and the rest of Europe are approaching the end of the tunnel.”

No sooner had the words left his mouth, than Italian unemployment recorded the highest jobless figures since quarterly records began in 1999, hitting 10.8 percent in June. Let’s hope the light seen at the end of Mario Monti’s tunnel doesn’t turn out to be an oncoming locomotive!

Drew Hillier. Editor, ForexSpace.com