(16-01-2008 08:00GMT) Once again the story reads and the Yen is crowned on top of the food chains; as expected and more likely as waited markets are now preparing themselves to digest quarter four earnings from the banking sector as American losses are all wide and across the board.

The dollar's rollercoaster is just starting to pick speed, after disappointing readings yesterday and low earnings, American stocks closed with a decline, setting the ripple effect across. Fears of a recession in the world's largest economy and jitters regarding the ongoing credit crisis and that it is far from over is affecting the market's sentiment once more.

Asian Markets followed the path of which the US started yesterday as we expect the global sell-off to flow powering more the yen which climbed to a two-an-a-half years high against the dollar; the pair is leading the downside channel setting the low today at 105.95.

The Euro gave back some of its gains in the late American sessions yesterday as unwinding of risky assets and the yens gains against all 16 active currencies made the euro lose some ground against the dollar; starting today the euro is gaining back its strength as fundamentally it remains the currency which maintains logical strength and a true reflection to an economic stand. The euro started the morning rising from the low set at 1.4775 to reach the highest in the Asian session at 1.4858.

The pound is battering as well as the dollar though after yesterday's inflation figures the pound rebounded from oversold areas yet it renounced the momentum again; news flowing for the UK housing market shows suggest its December performance is its worst since 1992 recession. The pair is readjusting to fundamental, technical, and market mechanism variables that have become volatile in such times, while the driver remains the US headings to recession as the extend of damage from the subprime spillover continues. Sterling against the dollar has started a mixed Asian session starting by falling to its lowest at 1.9565 and from there rose to set the highest during the session against the dollar at 1.9651 resuming back to trade now around $1.96s.