The greenback is still finding strong support from the sell off in the equity market amid a new wave of mistrust and prolonged expectations of a global recession. the oil and comodities prices are also coming lower and lower on these same expectaions. It looks that the equity markets are still looking for its bottom.

The japanese yen came higher across the broad for the same reason as the first funding currency of the carry trades transactions as its low cost.

The gold prices are going back and force in a very volatile market as the liquidity problems is underpinning the greenback from a side and the risk aversion giving support to the gold from another side as a reserve amid the current missing trust sentiment.

the word at the end is to be for the inflation outlook which looking down amid the current decline of commodities and energy prices whether or not we are actually in the recession or not which can put weights on the gold. It looks it is not the best instrument to be bought at the current stance of growth slowing dow this time.

The japanese crosses are still attracting the funds in the forex market as its strong senstivity to the movement in the equity market which is the mirror of the current credit crisis. The volatility is still the address of the forex market this month too.

Best wishes

FX Consultant

Walid Salah El Din

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