USD Trading Outlook (23-01-2013)

U.S. Dollar Trading (USD) traders really earned their pips yesterday with some tremendous movement in the currency markets. In Asia the BOJ decision to target a 2% inflation target sent the USD/JPY briefly above Y90 but the market had been expecting most of what they delivered and we saw a classic buy the rumour sell the fact reaction from traders. Banking loss Rumors and heavy stock losses in the European session saw the USD at day highs but this didn’t last long with the rumors debunked and US stocks surging to fresh 2013 highs as US House of representatives look set to increase the US Debt limit. Looking ahead, no US economic data today.