The forex market is still taking the clues from the stock markets performance. The gold is still trading as a mirror of the equity market movements too reaching its high at 977.95$ at the low of the Dow Jones trading today at 7156.

The Japanese yen is still under the same pressure versus the greenback and it is just shy now from 98. The Japanese yen has started to reflect the current weakness of economic Japanese and dovish growth outlook following US more than getting benefits from the unwinding of carry trades. The Japanese exporters stocks are getting use of this performance as the weak yen support their exports and makes it cheaper and competitive.

The declines of the equities markets could contain the current market sentiment of the currency market pushing the USD higher across the broad and the news of buying a higher stake percentage of citigroup could not make a serious change today but the doubts about the impact of the banking nationalizations movement in US to stimulate the wanted demand to restabilize the economy could contain the current market sentiment today. The pessimism controlled the markets giving a feeling to the investors that the turning back point may not be close and it can be farer than what was expected.

The gold is still holding its gains above 970$ and the US treasuries were underpinned by Dow loses which gained momentum after breaking 7550 and closing under it last week. These bearish signs reinforced the way down.

The Japanese yen was under pressure across the broad on the surprising resignation of  Japan's Finance Minister on accusation of being drunk during the G7 meeting but quickly it could get back some of its loses on the market focusing on the expectations of further loses of the equity markets and losing of the risk apatite and confidence in the global economic growth as there is no clear sign yet of even a staving of the current recession and deflation forces which faces US and the global economy. The supply is still taking the lead and the demand can not spur growth until now and trust in investing and hiring and the rates of consuming are going down in a conservative way resulted from the credit crisis which can clear the way for further slumps and devaluation of the assets markets generally not just the equity market.

As we have mentioned yesterday, the equity markets have faced profit taken waves after three days of rises on Obama's stimulating plan optimism. The investors have reevaluated the current situation and how far we are off a considerable change of the dovish market sentiment for carrying assets again taking risk on the current sluggish growth. As this plan is expected to be very conservative in spending waiting for a crucial risks for bailing out and this can not effect positively on the market sentiment as its actual impact to stimulate the economic growth may not be enough as directing this money defending for the existing of some losers firms can not be enough and it is not the question but the question is how can they smooth the way for growth confidence in the US economy stimulating the demand leading again for expansion after the crisis to not have further deteriorations not for just bailing out key certain firms to change the sentiment and getting back confidence!?