Daily Forex Analysis

The U.S Dollar came out swinging yesterday, surging .838 points on the DXY to close at 78.338.  The Kiwi took it on the chin, giving up 1.86% as commodities sold off.  The EUR was offered across the board for a 3rd day in a row as stops were blown out just below the 200 day MA. The EUR started the day just above 1.43 and finished down 2 big figures to 1.41.

Global Equity Markets were not spared either as a heavy sell-off prompted by continued poor earning from U.S corporations as well as China announcing a limit on bank lending in order to constrain the free flow of liquidity in the market place. On Wall Street, the DJIA tumbled 122.28, wiping out yesterday's advance, to close at 10,603.15.  In overnight trading the NIKKEI bounced back as China announced greater than expected growth, and equity futures are once again pointing up for today. This will be a relatively quiet day for economic releases.

Upcoming Forex Events for January 21, 2010

EUR       ECB Monthly Report 

USD      Initial Jobless Claims      Previous    440.00K  Forecast  444.00K 

CAD      BOC Monetary Policy Report 

CAD      Wholesale Sales (MoM)   Previous  0.40%  Forecast  0.30%