Market Outlook for January 18th, 2011

EUR/USD in the Asian market higher than yesterday at 1.3292 after a north quite day from north America and their bank holiday, USD/JPY and the JPY crosses mostly traded heavy today. ECB executive board and Cyprus CB chief Orphanides also noted that the market may have construed comments from ECB Pres Trichet last week and over the weekend as overly hawkish on inflation when in fact this is not the case. Cable opened in Asia at 1.5886 and touched a 1.5878 session low as the pair initially moved lower with EUR/USD as the market grows ever-skeptical Germany will allow the EU Finance Ministers meeting in Brussels to come up with a concrete plan to significantly bolster the EU rescue package. EUR/GBP opened at 0.8363 and has traded 0.8330/63 and remains heavy.. GBP/JPY opened in Asian at 131.35 and having traded 131.35/60 so far.

As for the equities the safe haven of players at the moment, The DOW remains to keep up by 55 point 11,787 and 0.47%, Nasdaq 2755, by 0.73% and S&P following to 1293 by 0.74%. In Asia, Nikkei 10,519 by 0.15%, as well as HangSeng and Shanghai 24,335 by 0.74% and 2835 by 0.08% respectively.

Sources: Various