(03/01/2008 8:30) Clearly all has gone wild as markets unleash the beast of expectations and without a doubt it's for a frail dollar. After yesterday the ISM reflected contraction in the Manufacturing sector in December it hit a nerve in markets, and that's the reading is comprehensive to the expected 1.0% GDP in the fourth quarter, and that wave of doubt and suspicion was followed by dovish minutes to their last meeting and a 50 basis points are now being locked in the market.

The European currency is now trading near its three weeks high against the dollar and no doubt if we say the 13 nation start is leaping strong bullish waves then now doubt about it dollar denominated assets leaped to new record highs as crude hit the three digit record of $100 per barrel and the shiny metal soared to its highest on records and still rising. The Euro is now trading above $1.47 and throughout the Asian session the pair recorded a high of 1.4731 a low of 1.4696.

The royal currency is surprisingly solid and consolidating as its weakness is squaring off that of the dollar and the volume on the pair remains low as they are no longer the luscious on board. Losing heavy ground against the Japanese yen and the Euro helped the pound abstain further losses as the dollar is pounded harder the pair today recorded a high of 1.9837 and a low of 1.9760.

The Japanese yen is again driven by sentiment as investors' behavior in the market is the key driving wheel to future targets. We all agree that the Japanese outlook is no bright and maybe is worsening as some expect slowing in the economy, rates are no near from rising yet the yen is practically the one standing out against almost all the 16 traded majors. That is all the ripple effect to shifting of interest, risk assessment, and investment decision as traders are unwinding their risky assets. The pair is now trading just above the key levels at 109.50s recording till now a high of 109.75 and a low of 109.21.