USD Trading Outlook (12-10-2010)

U.S. Dollar Trading (USD) retrieved some of its losses from the previous week in what was an uninspiring night with US and Canada Bond markets closed due to Columbus Day holidays. In other key developments, China has raised reserve requirements by 50 bpt for six large commercial banks overnight in an attempt to subdue the pace of the economy. US share markets were slightly changed with the Dow Jones higher by 3.4 points, S&amp P 500 up 0.04% and the NASDAQ up by 0.04%. Looking ahead, much of Tuesday&rsquo s focus will be directed at the FOMC minutes of the September 21 meeting, as the market looks to gage on how soon a second installment of QE could materialize. Followed by last Friday&rsquo s poor payrolls numbers, it is assumed that a lifeless Labor force would prompt the Federal Reserve with further easing in upcoming meetings.