US markets open on sell tone; Dollar suffers against yen

By IBTimes Staff Reporter | January 22 2010 10:20 AM

FXstreet.com (Barcelona) - US markets have opened with declines as risk aversion remains intact fuelled by risk aversion remains intact fuelled by Obama's banking plan and with concerns growing over the Chinese economy threatening to overheat. Dollar remains weak against Yen and strong against Pound.

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Dow Jones Industrials Index trades 0.3% down, while the S&P Index drops 0.4% and the Nasdaq index declines 0.6% in the firs 30 minutes of trading.

General Electrics has climbed 3.7% after showing a 19% drop in quarterly earnings and a revenue of $41.4 billion plus upbeat outlook for 2011. On the negative side, Google has dropped 2.9% after disappointing quarterly earnings.

Risk aversion has also affected commodities, with oil prices dropping below $76 and Gold prices dropping to one-month lows.

Dollar, weak against Yen, strong against Pound

USD/JPY recovery from Yesterday's low at has failed to break above resistance area at 90.50, and the pair remains strongly bearish trading at levels right above 90.00.

GBP/USD recovery from Yesterday's low has been rejected at 1.6285 and the Pound has dropped aggressively giving away about 200 pips and reaching a fresh session low at 1.6085 at Wall Street opening times.

EUR/USD rebound from Yesterday's low at 1.4025 has been halted at 1.4165 resistance area, and ther pair has pulled back to 1.4100/19 resistance area, which is being tested at the moment.

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