The durable goods data could give us some direction but the market is pretty quiet before the big events. I don't think we'll move much before the Fed.
Without fresh good news on the U.S., the current account worries come back to the fore so people worry about the dollar. With stocks it's a question of how much good news is already priced in.
After all, it wasn't a bad number. It's just that the market had positioned for something even better.
The market did go up a little on the news but now we're coming back down again because I think the good news is factored in,
There are players, including hedge funds and pension funds, establishing new longs in the euro at the start of the year.
Trade concerns and concerns over repatriation (of yen by Japanese investors selling U.S. treasuries) are the main components behind the yen's rise,
A lot of people bought the yen following Koizumi's victory and now they're feeling the squeeze. The yen has got about as much as it was going to get from the election result and now people are taking the opportunity to sell.
The mandate for Koizumi is stronger than many had anticipated,
We've just seen some stop-losses and it looks like people chose the downside.
People are still digesting Friday's data and wondering whether the short-term reaction to sell the dollar was right,