Action Insight Daily Report 5-19-09

Dollar Resuming Down Trend, Sterling Breaks 09 High

Risk appetite continues to dominate today. Nikkei opened sharply higher, following 235 pts gain in DOW yesterday and soared to 9300 level and maintained gains to close 251 points up at 9290. Yen crosses also extend yesterday's strong broad based rebound while dollar is generally pressured. Commodity yen crosses, the usual suspect, are so far the biggest winners this week with AUD/JPY and NZD/JPY climbing around 4% while GBP/JPY and CAD/JPY climbing around 3%. Two developments to note. Firstly GBP/USD has taken out this year's high of 1.5371 while dollar's recovery since last week should have completed.