A new day has started and the headline grabber is still the US recession! Projections are driving markets on a wild gains spree against the dollar after further confirmations from the manufacturing sector of contraction in all components, and even in export orders which the fed thought will be the backbone support at such time of dollar depreciation.

Asian equity markets started the day sliding affected by the surge in commodities as now the ripple effect is to spread and will eventually reach to final consumers; now Asian emerging markets are expected to maintain their robust growth and some might feel less of a pinch from record energy prices as they are subsidized in their nations yet inflation and budget restrains is what we need added to an already shaky equation of world growth. The Japanese yen at that is still holding on to its new trading range against the dollar within 103s as it's trading tight since the morning hitting the low at 103.17 and the highest was at 103.56; while the cross currencies are also consolidating within ranges yet with seen slight advantage for the Japanese yen.

The Euro area is now waited to add another piece of information to its inflation dilemma, and thought consumer prices have already shot the hoot now running at 3.2% prices at factory gates today confirm that the appreciation of their currency to records high is not sufficient enough to lessen the heat, the data for January still does not include now oil records as seemingly its taking us all to a new era of ranged prices where yesterday it hit $104 new record! The euro was little changed in early trade this morning yet still above $1.5160s consolidating well to gather further upside momentum to attempt to its long set targets at 1.57. Meanwhile since the correlation has been detected in mentioning the gold with the euro, we should mention that the shiny metal is still within the upside upheaval setting a new record at $980s while we are eagerly lurking the precious as it's glimpse away from its target at $1000!

The pound is still stuck in its 1.98s range not breaking to the downside and not able to reach to those terrible twos! The pound was light traded this Asian morning as well yet with clear seen bias for sterling against the dollar after it could not break through the 1.9840s sterling regained the upside wave to set the high at 1.9877.