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USD Trading Outlook (17-01-2012)

U.S. Dollar Trading (USD) the US markets were closed for a bank holiday so had little reaction to the downgrades from Friday in Europe. The EFSF was also downgraded by one notch but this was widely expected and also had a muted reaction. The market is still very short the EURO and any good news would once again prompt a short covering rally as the downside begins to look exhausted in the short term. In US stocks, closed. Looking ahead, January NY FED forecast at 11mn vs. 9.5mn

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