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Euro under pressure against Dollar

The Dow Jones fell below 8000 despite the new President coming in; people hoping for a bounce were disappointed. Dow Jones fell -4.01% and NASDAQ fell -88 points. Crude Oil went up by $2.23 to close $38.74 end of New York session. Due out today on the data front is the January NAHB Housing Market index.

The Euro was under extreme pressure against US Dollar as economic crisis deepened. This was mainly as the Yen became a safe haven for investors as risk aversion became higher. EUR/JPY fell 115; the Euro however surged against Sterling as banking crisis worsened.

This was also helped by the German ZEW survey which was better than expected coming in at -31 against -43.5%, this was due also to recent rate cuts which shows better outlook for business. EUR/USD ended the day at 1.2860 of the New York session. Data due out today from the Eurozone is the December German PPI.

The Sterling weakened extremely as heavy selling on the news of more banking crisis which gripped the economy. It was sold heavy breaking the 1.4000 ending 1.3890 against US$ at the end of New York session.

The GBP/JPY was all time low under 125 Yen. The CPI figure for December was down -0.4% against -0.8% forecast. Due out today is December Claimant count and the ILO unemployment rate.