Hello everybody, hope you are fine. After a quiet corrective day yesterday, majors unwind today starting early in the Asian session. Despite NY closed positive, Tokyo stocks tumbled triggering again fears of a global recession, and pushing again investors quickly out of risky assets. In this circumstances, Japanese yen jumped to a 13 years high against dollar, and multi years highs against other rivals, being the overall winner, followed of course by greenback. As the Jpy surged, Japanese Finance Minister warned he will “closely watch the markets” and will stay in close touch with the Bank of Japan and overseas authorities to avoid exposing further the country exports, although no action still was taken to put a brake at yen momentum. Meanwhile the Pound is also sinking fast, not only impel by last Tuesday Mervyn King’s words about recession, but also because external capital financing is drying up: with no capital flows, England will be forced to adjunct the trade deficit and rates more and faster than otherwise. Finally prospect for the Euro zone continuing deteriorating and more certain action will be needed from authorities, to restore some confidence in the zone.
To check today’s news, you can follow next link:
http://www.fxstreet.com/fundamental/economic-calendar/
Have a great day!
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