Market Outlook for January 7th, 2011

EURUSD declined yesterday after being sold off during the New York session. Negative Euro Zone retails sales put more pressure on the Euro, sending the EURUSD lower than 1.3000 psychological level. Traders expect more pressure on the EURUSD as speculations of a good forecast of Non Farm Payroll report due to be published today. Cable is also under pressure on expectations of good NFP numbers today, where it fell to as low as 1.5405 today. Meanwhile USDJPY rallied yesterday, touching 83.55 resistance level, and continued to trade in a range. The pair was trading at 83.47 during the early European session.

Big movements are expected in the markets today, as ECB President Trichet will be speaking at 11:00 GMT. Form Canada markets are expecting positive Employment change while unemployment percentage may slightly increase. While later during the New York session, Non Farm Payroll is expected to be positive, rising to 159K jobs added, while unemployment to slight decrease to 9.7%. Stay tuned!

US Equities were almost all in decline yesterday, with DOW closing at 11,697 points, -0.22% lower, while Nasdaq rose to 2,710 points, 0.28% higher and S&P declined to 1.274 points,-0.21% lower. In Asia, Nikkei closed at 10.541 points 0.11% higher, Shanghai closed at 2.972 points higher 0.51% and Hang Seng -0.48% down.

Sources: Various