Market Outlook for January 4th, 2011

EURUSD opened in Sydney and traded at 1.3360. Choppy trading continued as markets wake up from a long New Year's holidays, and slowly, trading is going back to normal. Yen was weaker against the EUR, trading at 109.70 as stops at 109.50 were cleared. USDJPY was strong which helped drag the EURJPY higher.

Traders are awaiting plenty of data from the UK today with Manufacturing PMI, Net Lending, and Money Supply at 09:30 GMT.

All eyes are on the FOMC meeting minutes tonight at 7:00 pm GMT where the FED is scheduled to release the minutes from their last meeting. Traders are expecting a stronger dollar as they look ahead towards the Job's report Friday.

US equities closed positive yesterday, with DOW closing at 11,671 points up 0.81%, while Nasdaq rallied 1.46% and S&P 1.13%. In Asia, Nikkei closed 1.65% higher, Shanghai was up 1.59% and Hang Seng 0.99%.

Sources: Deutsche Bank, Bloomberg