The risk appetite is still depressed by the weak US non-farm payrolls of March which have shown adding new 88k jobs while they were expected to be to 200k from 236 in February have been revised up to 268k. the US major indexes are still in the red territory while the greenback is still under pressure versus the single currency which could have a place again above 1.30 after yesterday rising following Draghi’s comments which ensured that there is no way to use Cyprus rescue plan as a template in other euro zone countries.

The FOMC minutes of its meeting on last 30^th Jan came to show worries about the Fed’s QE outlook as what have been shown in the recent report.

The FOMC’s members have given ideas but most of them were towards decreasing of the current QE plans not increasing them putting pressure on the current market sentiment causing loses in the equities markets and pushing the USD up on the risk aversion and on increasing of the closer than later expectations of ending or pausing the QE pumping liquidity of it.

While the markets are stepping cautiously towards the negations of having a deal to raise the debt ceiling in US from the current $16.4b, the worries about the deficit financing in US are rising up as with no deal there can be another financial crisis as the government which pays 2 million bills a day cannot issue new bonds and it will be forced to wait for liquidity and also cut spending by a way can cause turmoil can lead to default.

The gold has come under pressure following the minutes of the Fed’s last 12 December meeting which has ended to new timely unlimited buying of US treasuries by $45b monthly as the minutes have shown that there is tendency of cutting the QE stance by 2013.

The markets have watched strong dollar buying higher treasuries yields and drop in the equities market but that can be an overreaction as the text which came out from that meeting was clear depending on the economic changes as it has said that there is no change by falling of the unemployment rate to 6.5% and rising of the inflation to 2.5% and that what should be tracked by the markets. So there can be an explanation from the fed in favor of that direction of stimulation as there is no fear of the inflation upside risks and as the unemployment rate stands still in need of getting back.