The Japanese yen is still hovering above 83 versus the greenback after the BOJ decision to lower the interest rate to 0% to .1% setting a new ¥5 trillion for buying Japanese government bonds, commercial papers and assets-backed securities keeping its current ¥30 trillion funding of the banks which rose earlier from ¥20 trillion as a new action for fighting deflation and spurring investment and growth amid the current strong yen which tackles the Japanese exports competitivity. USDJPY rose to 83.9 after decision before coming down again to 83.2.

The single currency could creep again trying to get over 1.38 after falling yesterday in a profit taken wave with the market focusing on the European debt sustainability. The single currency  is still getting use of the ECB keeping of its easing policy unchanged while the Fed, BOE and BOJ are still looking for further easing steps to keep their recovery after flattering trading currently well above 1.36 versus the greenback.

The single currency is still getting use of the ECB keeping of its easing policy unchanged while the Fed, BOE and BOJ are still looking for further easing steps to keep their recovery after flattering trading currently well above 1.36 versus the greenback. The growth signs are still improving in the Euro zone and especially in the germane leading economy getting use of the slump of the single currency after the credit crisis and the debt crisis which attracted the market focusing this year pushing the single currency below 1.2 while the deflation concerns are emerging in US putting pressure on the Fed to take a second round of its quantitive easing policy buying more Mortgage backed securities and rolling over it’s holdings of treasury securities as they mature before this deterioration can have further negative impacts on the consuming and capital spending and to inform the markets that the Fed will not stand seeing the economy falling back in a second dip recession with no action even with the interest rate near 0% which is keeping the greenback under pressure across the broad until now.

The worries about the Europeans debts have brought back again containing the current market sentiment with the beginning of the European session. The European indexes are down and the single currency is under pressure across the broad trading below 1.34 again after last Friday rally on strong germane IFO release of August reached 106.8 could push it up from 1.332 to 1.349 by the end of last week but the cable could find some support from a narrower than expected current account deficit of the second quarter came at 7.4b Stg while the market was waiting for 9.7b Stg.

The Fed's deflation concerns are still containing the market sentiment putting pressure on the greenback across the broad. The single currency could get over 1.34 versus it but the cable is still skeptical by the growth downside risks amid slowing of US growth in the second half of this year after dovish MPC release minutes showing a tending to having further stimulation easing steps following US. The cable has been trading below 1.56 after the release of UK public sector net borrowing of August today which was expected to be 12.2b Stg from 3.173b Stg and came at 15.3b Stg  these data are important after last week King's remarks that debt situation of UK which needs to a plan be much more credible. The cable has been already under pressure  across the broad since the release of UK mortgages approvals which came at 45k in August and M4 Money supply which were -.2% while the market was waiting for increasing by .2% from .4% in July showing an easing of the inflation pressure breaking 1.5635 strongly reaching 1.5575 but with Moody's restoring confidence in UK AAA credit rating, the cable could climb to 1.562 ...