The pressure emerged today on the British pound from different sides but what has really triggered the collapse containing the market sentiment causing a gap with beginning of the Asian trading was the news about a huge bargain between AIG and the English insurance company Prudential for buying the Asian parts of the first for about 35$ Bln which could undermine the British pound versus the greenback. The cable which has closed trading last week around 1.525 has started this week trading below 1.52 but after breaking 1.51 the selling momentum has increased reminding the market with the debt increasing worries and the current un stable political conditions of UK by the preliminary elections but there was nothing concerning the risk appetite to support the greenback or no new rising dovish elements in the UK economy to cause this massive selling even the news about a coming bailing out plan from France and Germany to rescue the current Greek struggling economy were calling a cause of this falling today! Despite that the impact of it was limited even on the single currency itself after news in the weekend about this waited expected action.

The risk appetite which has been negatively impacted by the slump of US consumer confidence of February to 46 from 55.9 as the market was waiting for 56 has been hurt again today with a surprising increasing of the US jobless claim this week to 496k from 473k a weak earlier while the market was waiting for improving to 455k this week which underpinned the Japanese yen and the greenback as the recent weak consuming figures can has negative impact on other sectors and especially the labor market which is very sensitive to the consuming confidence and already suffering form a sluggish demand. From other side, Ben Bernenke was doubtful about the labor market recovering timing in his semi annual testimony in front of the house as he has repeated his mantra that the inflation pressure is still will contained and the economy is still not strong enough and in need of the current extraordinary low stimulus interest rates for extended period of time.

The risk aversion has contained the market sentiment today underpinning the Japanese yen and the greenback across the broad after the weak release of the germane IFO business climate figure which declined to 95.2 in February from 95.8 in January while the market was waiting for 96. the single currency which was trying to get above 1.37 versus the greenback has fallen below 1.36 with falling of US consumer confidence of February to 46 from 55.9 as the market was waiting for 56. The commodities and the energy prices have suffered too versus the greenback today with worries about the economic growth stability which triggered after the data from another side. The data was not encouraging as the weak consuming can has negative impact on other sectors and the labor market as well which is already suffering form a sluggish demand.

The risk aversion has contained the market sentiment today underpinning the Japanese yen and the greenback across the broad after the weak release of the germane IFO business climate figure which declined to 95.2 in February from 95.8 in January while the market was waiting for 96. the single currency which was trying to get above 1.37 versus the greenback has fallen below 1.36 with falling of US consumer confidence of February to 46 from 55.9 as the market was waiting for 56. The commodities and the energy prices have suffered too versus the greenback today with worries about the economic growth stability which triggered after the data from another side. The data was not encouraging as the weak consuming can has negative impact on other sectors and the labor market as well which is already suffering form a sluggish demand.