By FX Empire.com

Broad markets turned positive today after confidence and risk appetite were ignited by the EU accord on the plan that could contain the debt crisis and bring stability to the global financial system.

EU leaders decided yesterday to boost the European Financial Stability Facility to 1 trillion euro, recapitalize banks, writedown 50% of Greek debt and expand the IMF’s role, while China agreed to invest in a European rescue fund.

The Asian stocks managed to rise to the highest in seven weeks where the MSCI Asia Pacific Index rose today by 2.6% at 15:01 inTokyo, while in Europe FTSE 100 rose as of this writing by 1.99%, DAX rose 3.65% and CAC 40 rose 3.84%.

The Reserve Bank of New Zealand decided earlier this morning to keep the interest rates unchanged at its record low of 2.50% since the economy needs more stimulus. In South Korea the economy slowed in Q3 to 0.7% from 0.9%.

BoJ also kept rates unchanged at 0.10%, but to ensure “sustainable growth, price stability and a successful transition”, the asset-purchase fund was expanded to 20 trillion yen while the credit-loan program was kept at 35 trillion yen.

Other economic data today include Europe’s confidence reports which improved in Oct., and the US pending home sales, jobless claims and the third quarter GDP expected to show growth by 2.5% from 1.3%.

As demand on the safe haven dollar lessened today, other currencies and commodities managed to expand their gains today. The dollar index is trading as of this writing around the 75.70 level.

The euro rose considerably to 1.4000 as of this writing, trying to settle above it. The pound however is seeing limited gains trading around 1.5985. Since the US dollar is weakening the yen continues to trade at record highs around 75.85.

Crude oil found support today, especially with the weakening dollar, trading around the $92.00 per barrel level, while gold fell since investors turned to higher yielding assets, trading around $1710.50 per ounce level.

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