Finally today we can say order is restored in normal day trading in FX markets as economies are pumping our ways guiding economic fundamentals to set the light at the end of the tunnel.

With expected US data to show the housing market is still deepening the bottom and a somehow stable inflation, we do not see market bulls attack, as subprime woes take the markets once more as further losses and tightened liquidity in store shadowed over investors' sight, which was clearly evident on our beloved yen movement.

With Germany pumping in rising inflation and the ECB still not clear on their stance regarding lowering rates, the euro attempted to solidly consolidate in the 1.47s, rebounding from the lower range near 1.4690s which offers strong support.

The pound was not supported by the industrial data, while the BoE minutes that as expected showed the split of votes to a stronger rate cut somehow helped the dollar to gain further against the pound which at the time appears extremely repellent to investors. The pound now is heading to the 1.9420s a critical support at the time which if breached can further extend the downside targets. The highest set for the day was intact in early trade at 1.9501 where not breaching the mentioned resistance also gave further downside push for the pair.

With the credit crisis fears, writedowns, and losses the hesitance and risk aversion is once again seen on the yen especially after Asian stocks slid and commodities surged they still did not halt investors from buying back the low yielded currency. The strengthening yen drove the USD/JPY pair to the downside to as low as 107.50s yet the pair could not further pursue the downside to climb back once again to its previous opening levels near 107.90s. The yen managed to gain well against the euro and sterling which further weakened them against the greenback; where against the 15 nation start set the low at 157.96 and versus sterling the pair was lowest at 209.10 yet still higher than yesterday's recorded lows for the pair.