Posted: 05 Jan 2011 06:42 AM PST

Here is the hourly perspective for US session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/01/05/05/

Posted: 05 Jan 2011 05:19 AM PST

Despite being a private survey, ADP anticipates a 297K jobs creation for December, shockingly positive reading; dollar soars across the board as well as stocks in a first spike, while gold approaches to $ 1373/oz, aiming to break pas week low, barely 1 buck below.

Starting the day

Posted: 05 Jan 2011 03:35 AM PST

Hi everyone and welcome back! Dollar continues higher across the board, as stocks and commodities extend their slide. Euro is suffering the most after losing the 1.3250 support area, targeting now the 1.3160/80 price zone; you can see details here:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/01/05/02/

Woes in Portugal and Spain, will likely keep the upside limited in the cross, as the Euro contagion fears raise again, after a very poor Portugal bond auction, while real-state outlook in Spain continues worsening: office rents in Madrid have fallen 30% since the peak in the third quarter of 2008. And capitalization rates are at about 6.5%, 2.25 percentage points wider since the third quarter of 2007, representing an erosion of commercial-property prices.

Pound holds some strength, yet worse than expected Construction PMI should weight on the UK currency today, contracting after 9-month growth. Still only below 1.5520 the GBP/USD could trigger an interesting bearish rally, and not before.

Yesterday the FOMC minutes showed a more optimistic FED regarding economic growth, but they made a point: there are no plans to raise interest rates or normalize policy at an aggressive pace soon as the FOMC committee sees a 'fairly high threshold for making changes to the QE2′. Anyway! market is back to normal, so we will probably see some slow down now, ahead of US ADP data.

Here is the link for today’s calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!