Daily Market Review for January 13th, 2011

The EURUSD opened the Asian session around 1.3130 after rising higher in the us session due to calming EU debt markets led to EUR buying against the JPY and CHF. EURUSD is facing downward pressure on rumors that Spain may file for ECB/IMF loan. Many believe the strong rise in the EUR/USD over the past 24 hours is corrective and the peripheral European sovereign debt crisis is far from over bearish trend remains on a stronger dollar sentiment especially from next week. The sterling opened at 1.5762 in Asia today .The cable is the second best performing currency for the past year up to date by not depreciating as most of currencies and with all coming news events today for the cable expecting bank rate to remain unchangeable therefore we'll see big moves today. JPY and crosses did not do much in Asia up to now EUR/JPY fell from an early high of 109.15 to 108.72. GBP/JPY was dragged down marginally from 130.91 to 130.67.

As for the equities, the DOW rose for the 3rd day to 11755, rising 0.72%, while Nasdaq managed to continue rising to 0.75 % and S&P following by 15 points to 0.90%. In Asia, Nikkei rose 83 to 0.79%, as well as HangSeng and Shanghai rallied by 0.57% and 0.22% respectively.

Sources: Various