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. Nikkei 225 is trading now at 7540 in spite of the red close of Dow Jones at 7271 as the dovish sentiment is still containing the market as there is no expected good news soon and the bad news are coming from time to time. In the recent 2 days, Ben Bernenke has indicated to the markets that the recovery is not expected to be this year in his semi-annual Congressional testimony.
As the eyes are still focusing on the housing market in US as it was the reason of the crisis, God willing, It is important to wait today for the release of US new home sales which is expected to come down to .330 m from .331 in December after the weak release of the existing home sales of Jan which came at 4.49 m lower than the market expectations of 4.75 m and down monthly by 5.3%.