SYDNEY - The US dollar edged higher next to the euro and pound in midmorning trade Thursday, subsequent to a mixed performance overnight, as investors act in response to explanation from the Bank of England and robust economic data in Europe. The dollar recover ground against the euro after falling during the night with the release of data showing euro zone gross domestic product rose 2.6 percent in the third quarter from a year past.

The foreign exchange markets and mostly the carry trades remain unpredictable and thin. This is due to equity market unpredictability, it does emerge though that fears of systemic stress emanating from US lending institutions suffering huge losses due to sub prime might have been magnified. If that is the case it ought to help stabilize the equity markets at some stage and support the carry trade currencies such as the Australian dollar and New Zealand dollar.

Refer: http://www.forbes.com/markets/feeds/afx/2007/11/14/afx4341193.html