With the overnight session so quiet on the lightened holiday trade, market participants were content on settling in ahead of the US economic data which have now been released.

Overall, the releases were encouraging with both ISM manufacturing and Reuters/UofM confidence exceeding expectations to further support some sentiment that we could finally be reaching a bottom within the economy. Factory orders were weaker than expected but failed to materially factor into price action. Looking at the major currencies, Sterling has been the outperformer on the day while the Yen has been the underperformer. Meanwhile, Fed Bullard has been on the wires in support of the case for the Fedís strong regulatory role in the current economic environment. The market overall continues to chop around and we would recommend paying close attention to price action in Eur/Usd, with a break above 1.3390 or back under 1.3195 required for a clearer insight into market direction. Above 1.3390 will likely suggest that the markets are prepared to continue taking on risk, while below 1.3195 indicates that we are still not yet out of the woods. US equities are under pressure early on which doesnít bode well for Euro bulls. Commodity related price action has been rather interesting with crude up +2.00%, by $52 despite the strain on equities.