Action Insight Mid-Day Report 5-21-09

Yen to Gain as Markets Turning Around?

Investors' sentiments seem to have a drastic turn in the past twenty four hours, in particular after UK's downgraded by S&P.

European stocks are sharply lower with major indices dropping over 2% at the time of writing while US stocks open sharply lower.

Dollar recovers slightly against major currencies but the recoveryis so far mild and there is generally no change in the near term bearish outlook in greenback against European majors yet.

On the other hand, current development triggers us to take a serious look on whether yen is building up strength for a strong rebound.