(2/01/2008 08:00GMT) It's the first day of trading in a new year probably we can say nothing has changed in the past two days yet the key different remains investors' sentiment after their resolutions, what is this year upon us going to be, and where are economies heading? Those are key queries all are asking in search of clues to headings.

After a slight pick up in November's sales of previously owned houses in the US economy that was just a string of hope that stability is seen in the tarnished sector. The dollar gained some ground after ending the day higher against majors despite the Japanese yen as some position squaring and minimization of risk helped the yen gain back.

As for today the Asian session started thin while we await manufacturing data from all economies as expectations are that the sector slowed in December in the US and that is giving majors more strength against the dollar. The euro started the session gradually inclining recording a low of 1.4594 then rising to set the high at 1.4668.

As for sterling any weak reading from the economy just fortifies expectations to a rate cut this month as the highlight in January for all economies will the release of the first fourth quarter GDP reading as all are anxiously waiting for. Sterling is trading well below 2.0 dollars levels as that is now the major resistance level facing the currency and until the hour of this report it recorded a high of 1.9897 and a low of 1.9815.

As for the Japanese currency till now it seem to be starting its fourth day of appreciation against the US dollar as in that time it has driven the pair down to trade among 112.0s once again down from as high as 114.60s. In the Asian session today the pair is trading below 112 levels recorded a high of 111.98 and a low of 111.31.