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All Eyes on China by GoLearn Forex

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