The markets start yet another jittery and volatile week as the pessimism weighs on the sentiment and investors are mixed over the chaos prevailing in Egypt.
The demand for risky assets is subdued especially for emerging market assets as the protests in Egypt turn violent; investors fear of the spread of the chaos into neighboring nations and especially oil producers, not forgetting the political weight for Egypt in the Middle East and its effect on foreign policies in the region.
Conditions are starting to stabilize despite the losses seen in Asian markets; stocks in Asia decline pressured by the unrest in Egypt and a stream of downbeat earnings which pressured Japanese markets and the yen further. They market extended the global rout triggered on Friday which wiped more than $500 billion from the value of global stocks.
The Japanese yen and the Swiss franc held steady against their rivals on haven demand especially versus riskier high yielding currencies. The US dollar versus the Japanese yen was steady though with a downside tendency still, as the pair moved slightly higher to cover a small opening bearish gap. The pair is currently trading around 82.00 areas, recording so far the low of 81.90 and the high if 82.22.
Greenback was also trading within a tight range around opening levels, where the dollar index gauging the federal currency's movement versus its six major counterparts hovers at this time around 78.14 areas recording so far the high of 78.31 and the low of 78.06.
The euro also opened on a slight bearish gap and currency moving slightly higher to cover it ahead of the flash CPI estimate which is expected to show price pressures still rising, stimulating expectations for further ECB comments on price stability ahead of the meeting later this week on Thursday. The pair so far recorded the high of 1.3621 and the low of 1.3568 after opening at 1.3585 and currently hovering around 1.3610 areas.
As for the British pound, it also moved slightly higher versus greenback trading now around 1.5863 recording so far the high of 1.5884 and the low of 1.5820.