Slow Start

Good morning,

The markets are a little slow to start the New Year. This is probably also due to the NFP but depending on the results of that we can start to see our normal volatility again. We have no charts to show just yet and actually wont do until Monday when we start trading with regular volume.

Something you should all be aware of is how season affect the markets. We mentioned this last January as well. Often we find that in the month of January the USD gains against the GBP but having said that the GBP quite often gains against the Dollar in December which as you know did not in December 2007. It is something to be aware of this month.

We have resumed our short stance in the USDCAD as we think it may continue the current downtrend. Our stops are not far away from this morning entry so risk is quite minimal.

Happy Trading.

Forex Analysts

Anne Chapman & Javid Shaik