EURO hit an intraday high of 1.36

*Australian Dollar*: The Australian Dollar's advance seems to have
been capped as the potential cost of the Queensland floods and its
impact on local growth continue to be at the forefront of traders
minds. On Friday the dollar spent most of the local day in a tight
range (0.9800 to 0.9860) before moving above the 99 cents level during
the European and US session as positive EURO data releases sparked a
brief bought into riskier assets. PPI (Producer Price Index) is due
out this morning with forecast expected to well down of the previous
quartered reading of 1.3% with the potential to see some Aussie
selling. The Australian Dollar is up against the New Zealand Dollar
and is currently changing hands at 1.3041.
* We expect a range today of 0.9800 to 0.9900

*New Zealand Dollar*: * *The release Friday of Retail Sales dampened
demand for the Kiwi with the report coming in well below
expectations. The NZ Dollar dropped to 0.7546 on the release and has
many economists predicating that interest rates in New Zealand will
remain on hold until at least the third quarter. The RBNZ is scheduled
to meet Thursday this week and the accompanying statement will be
heavily looked at by traders for any hints to the timing of any
future cash rate adjustments. In offshore trade the Kiwi''s movements
were limited (0.7520 to 0.7580) with it failing to consolidate above
0.7600 cents.
* We expect a range today of 0.7500 to 0.7600

*Great British Pound*: Retail Sales for December came in at -0.3% a
report released Friday indicated as one of the worst winter periods in
more than a century curtailed local shoppers spend. Despite this poor
reading the Pound still managed to hold on the 1.60 handle against the
Greenback with the pair trading between 1.5880 and 1.6020 on
Friday. Adding to CABLE volatility this week will be the release
of GDP (Gross Domestic Product) and the Bank of England minutes.
Against its southern hemisphere counterparts, the Pound is trading at
1.6150 against the Australian Dollar and 2.1050 against the New
Zealand Dollar.
* We expect a range today of 1.6000 to 1.6200

*Majors*: The EURO continued its recent form against the Greenback
Friday as comments from European Central Bank Executive Member Jurgen
Stark came out indicating that that ECB would look to strengthen the
regions rescue fund. The EURO hit an intraday high of 1.36 as reports
out of both France (Business Indicator) and Germany (IFO Business
Climate) came in well above forecast. The Greenback will face further
tests this week as a raft of top tier releases are scheduled and
include Wednesday's Consumer Confidence report and Thursday's
Federal Open Markets Committee interest rate decision. Against the
Japanese Yen, the US Dollar is steady and trading at 82.50.

*Data releases*
* *AUD*: PPI q/q
* *NZD*: No Data slated for release
* *JPY*: No Data slated for release
* *GBP*: No Data slated for release
* *EUR*: German and French flash Manufacturing and Services PMI;
EuroZone Industrial New Orders
* *USD*: No Data slated for release
Source: Fxstreet.com