The next 24 hours will again be important for event with risk the US announcing details of stress test for the banks. G7 officials will also meet in Washington to discuss global economic issues. Markets are still trying to put a positive gloss on events, but confidence will remain very fragile with particular fears that the banking sector suffer a new round of damaging losses from credit card and commercial lending. The dollar has been posting a series of lower highs and the overall risk is for a further decline to at least 97.30 against the yen over the next 24 hours
Confidence in the global financial sector remains fragile with unease fuelled by larger than expected losses as US investment banking group Morgan Stanley. There were also reports that Japanese financial group Nomura would report losses which undermined confidence in the financial sector, although uncertainty was the dominant influence
There is still some residual optimism that the global economy may be stabilising and the yen is still struggling to secure strong support. The dollar found further support on dips towards the 97.50 support region with narrow ranges still dominating.
The US currency was again blocked above the 98.40 level on Thursday as higher US jobless clams and lower existing home sales provided no support to risk appetite.