Today's session started rather quiet as markets looked to take a breath after the big moves in the US, but the quiet was fleeting as a late Dollar surge set the markets moving. The calming 100 pip range in Asia was a nice respite after the overnight US drop of four handles, but as the session wound down, the EUR/USD fell from 1.3610ish levels to prices just above 1.3500 in less than an hour. Exuberance of the possibility of a huge stimulus package by president elect Obama coupled with the Italian Bond fiasco and capped of by the likelihood of data later in Europe that will show that inflation continues to slow in the Euro Zone helped grease the wheels of this move. GBP/USD saw a similar move, falling from session highs near 1.4722 to bottom out near 1.4570, as EUR/GBP remained relatively steady between 0.9291 and 0.9255 after yesterday's huge drop.

EUR/JPY saw big losses from early highs of 127.40 to lows late in the day near 125.75, thus helping to neutralize the counter moves in USD/JPY, which traded in a more subdued fashion dropped from early highs of 93.58 to lows of 92.85 before stabilizing near 93.11.

Be aware that later we have some European data, including the PMI composite and consumer price estimate as well as the possibility of continued follow through with some of the moves we saw in Asia.

Upcoming Economic Data Releases (London Session):

1/6/20097:00UK Nat'wide House prices sa (MoM) DEC -0.40%-1.50%
1/6/20097:00UK Nat'wide House prices nsa(YoY) DEC -13.90%-14.60%
1/6/20097:45FR Consumer Confidence Indicator DEC -43-44
1/6/20098:50FR PMI ServicesDEC F 41.641.6
1/6/20098:55GE PMI ServicesDEC F 46.446.4
1/6/20099:00EC PMI ServicesDEC F 4242
1/6/20099:00EC PMI Composite DEC F 38.338.3
1/6/20099:30UK PMI Services DEC 40.139
1/6/20099:30UK Official Reserves (Changes)DEC $2249M - -
1/6/200910:00EC Euro-Zone CPI Estimate (YoY) DEC 2.10%1.80%