USD Trading Outlook (19-01-2012)

U.S. Dollar Trading (USD) the Dollar was on the back foot until the final few hours of the US trading session as positive Chinese German data helped spark a relief rally in Global stocks. The EUR/USD and most risk assets rallied before paring these gains into the day’s close on fresh Greece Debt deal concerns. US January NY FED Index rose to 13.5 vs. 8.2 and the Bank of Canada held rates at 1.0%. In US stocks, DJIA +60 points closing at 12482, S&P +4 points closing at 1293 and NASDAQ +17 points closing at 2728. Looking ahead, December PPI forecast at 0.1% m/m and December Industrial Output forecast at 0.5% vs. -0.2%.