Market Review By TraderXP: 

The yen touched the weakest level against the dollar since June 2010, on speculation the Bank of Japan will work with the government of Prime Minister Shinzo Abe to step up efforts to stimulate the economy.
Japan's currency headed for the ninth week of declines as the Cabinet approved the 10.3 trillion yen ($ 116 billion) fiscal stimulus and the people answered wide-than-expected current account and trade deficits. The euro remained higher after yesterday's growth to the most in five months against the dollar ahead of a report that may show industrial production in the region has increased.
"The yen is being sold after the current account data," said Junya Tanase, chief currency strategist at JPMorgan Chase & Co. in Tokyo. "Isvulnerable yen negative headlines, as selling pressure is gaining momentum."

Market News

Wall Street rises as China poses to the S & P back in the five-year high
Shares rose on Thursday, and S & P 500 finished in fresh five-year higher, stronger-than-expected Chinese exports spurred optimism about the prospects for global growth.
Buying accelerated in the late afternoon, after the S & P 500 broke through technical resistance at 1,466.47, which was the level of the market close on Friday and the highest level since December 2007.
"Historically, January is a positive month for the market, and you see that play," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
Financial and energy stocks were gainers of the day. Financial sector index rose 1.4 percent, while the energy sector grew by 1 percent.
Analysts cited economic data from China as a catalyst for the day that showed the country's export growth rebounded sharply seven-month high in December, a strong finish, after seven consecutive quarters of decline.
"This is interpreted positively, that they stopped the decline (in growth)," said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia.
"If they continue to produce good growth, which will support our global manufacturers."
Fear gauge of Wall Street, CBOE Volatility Index suggested markets were relatively calm. VIX fell 2.3 percent to 13.49.
At close on Thursday, S & P is about 6 percent below its all time closing high 1,565.15, hit in October 2007.
Index Dow Jones Industrial Average gained 80.71 points, or 0.60 percent, to 13,471.22. 500 Index Standard & Poor rose 11.10 points, or 0.76 percent, to 1,472.12. The Nasdaq Composite Index added 15.95 points, or 0.51 percent, to 3,121.76.
Session on Thursday, included previously falling thattraders said was caused by trading in the options, which led alarge amount of S & P futures hit the market at the same time. That sent the S & P 500 index down quickly, but the losses were canceled a day.
Financial benefits from the events of this week have added clarity to the rules of the mortgage banks and the potential impact on the housing market.
Consumer lending U.S. government watchdog mortgage rules Thursday that will force banks to use new criteria for determining whether a borrower can repay a home loan.
Earlier this week, several large mortgage lenders reached an agreement with regulators to complete the survey on behalf of the Government of redemption.
"This resolution. This is not hanging over their heads," said Brunner.
Bank of America gained 3.1 percent to $ 11.78, while Morgan Stanley rose 3.7 percent to $ 20.34, a day after sources said thebank plans to cut jobs.
Upscale jeweler Tiffany shares fell 4.5 percent to $ 60.40 after it said sales were flat during the holidays.
Herbalife Ltd has stepped up its defense against activist investor Bill Ackman, stressing that it is a legitimate company with a mission to help improve nutrition and public health. The action ended at 1.8 percent at $ 39.24 after a volatile day.
After the closing bell, American Express said it would cut about 5,400 jobs, and take about $ 600 million after-tax charge in the fourth quarter. The stock added 0.7 percent to $ 61.20 after-hours trading.
Volume was above average in 2012, 6.42 billion shares traded per day, with about 6.77 billion shares of hands on the New York Stock Exchange, Nasdaq and NYSE MKT.
Advanced outnumbered decliners on the NYSE from 1916 to 1039, while the advanced well ahead of outsiders on Nasdaq at 1,439 to1, 036. Reuters.com

Currencies

Yen drops to 2 1/2-year low Abe, Japan current account
The yen fell to 2 1/2-year lows on Friday after Japanese Prime Minister Shinzo Abe said the BOJ should consider maximizing employment as a policy goal on top of its current mandate of price stability.
Abe's comments, made in an interview with Nikkei published on Friday, put new pressure on the yen as having a dual mandate, like the U.S. Federal Reserve, the Bank of Japan can make a more aggressive easing.
The dollar rose to a height of 89.35 yen, its strongest since June 2010, before some of its gains to trade at 88.90 yen, still 0.2 percent from late U.S. levels.
Also adding pressure on the yen data showed, Japanposted current account deficit 222.4 billion yen ($ 2.5 billion) in November. It was the first deficit in 10 months, and more than the median forecast of economists almost negligible deficit of 3.5 billion yen ($ 39 million).
Ayako Sera, a market economist at Sumitomo Mitsui Trust Bank, said that the data highlighted the slow Japan's trade with China after aterritorial disputes provoked anti-Japanese riots in September.
"The deficit in the current account is likely to continue over the next couple of months, because of its seasonal nature," she said.
Stronger dollar accelerated after the break the88.50 option barrier caused short covering thin early trade Wellington.
"Short-term players that have taken profits are now re-entering. Growth above 90 is in sight now," said a trader at a Japanese bank.
The euro also rose to 118.58 yen, high last seen in May 2011, and the last was 117.79 yen, slightly above the level of the late U.S..
Yen was dipping from November on speculation more easing from the Bank of Japan. Traders expect the central bank to take a clear-two per cent inflation target at its policy meeting on January 21-22 to fall in line with the objectives of the Liberal Democratic Party-led government elected last month.
But the rise of the yen shot about 10 percent against the dollar and 13.5 percent against the euro in less than two months, some traders began to worry about the friction with other countries.
Abe disk can be seen as a beggar thy neighborpolicy aimed at currency devaluation due to its trading partners, they say.
"I can easily imagine the fall of the dollar yen more quickly if, for example, (U.S. Treasury Secretary nominee Jack) Lew cause even the slightest sign of concern about the policy of Japan," said a trader at a Japanese trading firms.
But the underlying pressure on the yen remains constant deepening bias BOJ to ease sharp contrast with other major central banks.
For example, the minutes of the meeting of the Federal Policy Reserve'slast released last week and the recent statements by some officials in the bank showed concern about the possible adverse effects of its stimulus.
On Thursday, European Central Bank President Mario Draghi gave no indication it will cut rates in the near future, disappointment euro bears, who thought that the ECB would be inclined to cut rates to shore up the shaky economy of the euro area.
Dredge in an apparent about-face from dovish stance last month lifted the euro by 1.6 percent on Thursday, the biggest daily gain in five months, and it kept growing up in Asia, trading at $ 1.3262.
The single currency is not far from 8 1/2-monthpeak of $ 1.33085 hit last month.
The euro was also supported by strong demand for the sale of mainly two-year Spanish debt that caused the Spanish 10-year bond yields fall to 10-month low.
The British pound, hit by string of weak economic data in recent days also rose sharply on Thursday after the Bank of England left interest rates and quantitative easing target unchanged.
Pound to $ 1.6155, while maintaining 0.8 per cent increase on Thursday.
The Australian dollar held near a four-month high hit on Thursday after strong Chinese trade data. Aussie unit fetched $ 1.0586, near Thursday's high of $ 1.0599. Reuters.com