• The USD is trading sharply lower pressured by fallout from Friday's release of weaker than expected nonfarm payrolls, the weaker than expected US employment report is expected to prevent the Fed from adopting an earlier rate hike, USD was also pressured by a surge in gold prices which gapped open $20 higher and in reaction to report of a sharp rise in China's exports, the surge in China's exports encouraged optimism about the global recovery and sent Asian equities to a 17 month high, commodity currencies were supported by the rise in the price of gold and firmer crude prices which topped $84 a barrel, Euro rallied despite report that Portugal's debt rating may be at risk for downgrade, GBP gains in reaction to the Tories pledge to cut the UK budget deficit, CHF supported by strong Swiss retail sales with gains limited by threat of intervention, AUD supported by China's trade data and strong ANZ jobs report
• Focus turns to today's release of Canada's housing starts
• China's December exports rose 17.7% imports rose 55.9%, China's trade data supports global equity and commodity markets
• Feds Bullard says US interest rates are likely stay low for quite some time, he sees positive US jobs growth in H1 2010
• ANZ Australian December jobs ads rose by 6%, AUD higher
• Moody's warns of possible ratings cut for Portugal
• Tories pledge to cut UK deficit more than the Labor Party will, City says UK will avoid a debt downgrade, GBP higher
• Swiss November retail sales rose by 0.6%, SNB's Hildebrand reaffirms commitment to combat excessive appreciation of the CHF versus the EUR, CHF higher
• President Obama says that clean energy initiatives will create 17k in new jobs and expressed concern that the US was falling behind in solar technology, pledged $2.3bln in tax credits for clean energy
• UPS to cut 1,800 jobs
• November consumer credit fell by a record 17.5bln, a 5bln drop was expected
• CFTC commitment traders for last week shows that speculators cut net long USD positions
• US equity markets set to open higher, European equities1% higher, Nikkei closed for holiday

Upcoming Events

• US - Monday, no US economic data is due for release today
• CAN - Monday, December housing starts will be released expected at 160k compared to 158.5k last month

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