Stocks making a strong comeback, Dollar still soft

US equities have about halved their losses, trimming losses to under 200 points in the Dow, briefly. EUR/JPY is showing strength at the moment as the market continues sell dollars against Europe this afternoon. EUR/USD has broken above 1.4320, the Monday afternoon high while cable is well above the 1.8120 level that capped it Monday morning and again earlier this afternoon. Oil and gold prices continue to run with confidence in the US at a low ebb this afternoon. Dealers are increasingly reluctant to hold any position, even winners, prompting buying of commodities and covering of long dollar and long yen positions taken in recent weeks. Funding is the key amid very tight lending markets.