The quantitives easing policies could contain the current market sentiment after the recent central banks massive cuts putting pressure on the British pound after the last week BOE cutting interest rate by another .5% to be just .5% and its announcement that it is ready to buy further governmental gilts to afford the governmental financing requirements to stimulate the economy. The cable has found very easy this time to go lower than 1.4. I have mentioned in my recent analyses that this quantitive easing policy should put pressure on the currency from increasing the supplied money from a side and from increasing the budget deficit from another side which can threat total economy creditability and the currency buying value.

The US labor report of Feb has shown further strong deteriorations in the labor market. The unemployment has reached 8.1% in Feb up from 7.6% in Jan and the non farm payroll has lost further 651k in Feb which can effect negatively on the consuming pace in US which is already struggling under the pressure of the recession and the negative business sentiment. As we have seen Feb consuming sentiment of Michigan university final reading decline to 56.3 and also the US consuming Confidence survey of the same month has reached 25. The greenback was under pressure just after these pessimistic data release but it could creep up again later.

The gold could get back above 930$ again as the risk aversion could contain the current market sentiment pushing Dow below 6600 amid further bad news from GM which suffers the decline of demand and the bankruptcy fears as the current financial situation. As long as this sentiment is still persisting because of the credit crisis and the unsustainable loses of it, the bad news comes underpinning the downward trend in the markets. It has become actually difficult and no signs of improvement yet which can show that there can be further declines ahead and the waiting of these is not welcomes by the investors who take a safe haven position.

The greenback is still the currency of the crisis taking use of the current risk aversion sentiment. the market has read from the Trichet's comments after the ECB decision to cut interest rate by another .5% to be 1.5% that cutting further is expected as the growth conditions have exacerbated and the inflation will be will anchored over the medium term in spite of this current low interest rate level as the recessionary forces accumulation which can tackle any underling inflation risks building up over the medium term. it has been obvious that the way out from this crisis should be from the US which can underpin the greenback versus the single currency on the growth fundamentals economical prospects and there will not be appeal for taking risk investing in other currencies before a realized change in US.