Market Outlook for January 10th, 2011

EURUSD continues to drop after being sold off during the Asian session this morning on the back of rumors that Portugal will seek EU/IMF support, repeating the same Greek/Ireland scenarios. EURUSD was trading at 1.2860. The sterling continued to range against the USD in the Asian session, trading at 1.5540's. USDJPY opened higher with 20 pips gap from the closing on Friday, currently trading at 83.14.

Today at 12:00 GMT ECB President Trichet will be speaking, which may affect the Euro. While at 13:30 GMT, markets expect the Building Permits report from Canada., expected to rise to 0.8%.

US Equities closed negative Friday, with DOW closing at 11,675 points, -0.19% lower, while Nasdaq fell to 2,700 points, -0.25% lower and S&P declined to 1.272 points,-0.18% lower. In Japan Nikkei was closed due to a bank holiday, Shangahi was down 1.66% while Hang Seng was down -0.65%.

Sources: Various