The Greenback continued to show signs of weakening yesterday as the DXY closed just above 77. All majors gained on the Dollar with the exception of the Loonie. The NOK picked up 1.03% from Friday's close. The EUR hit an intra-day high of 1.4557 before retreating. On the back of Dollar weakness Gold jumped up another $13.60 to close at 1,151.85. Oil was essentially flat on the day giving up 23 cents to $82.52 a barrel.
Global Equities were mixed across the board yesterday. The DJIA advanced 45.80 points to close at 10,663.99. 182 million shares traded hands yesterday as the Dow was up for a 4th consecutive session. In the overnight Asia stocks paired gains as China took decisive action in raising the yield on its' one year Bill to 1.8434, an increase of 8 bps.
Today will be another light day for economic data releases, so expect prevailing market winds to continue. For now all eyes will be focused on China monetary tightening and its potential effect on the market as well as its impact on the global economy.
Upcoming Forex Events for January 12, 2010
GBP Trade Balance Forecast -7.00B Previous -7.10B
CAD Trade Balance Forecast 0.90B Previous 0.40B
USD Trade Balance Forecast -34.50B Previous -32.90B
USD IBD/TIPP Economic Optimism Forecast 49.10 Previous 46.80
Disclosure: GBP, CAD, USD