USD Trading Outlook (13-01-2012)

U.S. Dollar Trading (USD) was under pressure yesterday as traders reacted to a surge in the Euro after very positive Spanish bond auctions which led to a dramatic tightening of the peripheral European 10yr bond yields. Weak US Weekly jobless Claims put a dampener on the positive risk appetite and reversed most of the stock gains in the US session. Weekly Jobless Claims jumped to 399k vs. 375 k forecast. In US stocks, DJIA +21 points closing at 12471, S&P +3 points closing at 1295 and NASDAQ +13 points closing at 2724. Looking ahead, November Trade Balance forecast at -45bn vs. -43.5bn previously. January UoM Consumer Sentiment forecast at 71.5 vs. 69.9 previously.