Interesting day as the market made some new dollar lows against the pound and the commodity pairs, but failed to close lower against the other majors. Economic data overnight was worse than expected as US Retail Sales data disappointed for the month of December, showing further signs that consumers are spending less. This may have also caused business inventories to increase moer than expected, rising .4% vs. .1% expected. Unemployment claims were also a touch higher. The ECB kept interest rates unchanged at 1% and Trichet made some headlines during the Press conference saying Europe faces a bumpy road and a great level of uncertainty. Perhaps this kept the euro from gaining any ground. I think at this time, investors are very cautious where they put their money. It's obvious that commodity related currencies are getting the bulk of the action; this may continue throughout the year. Today's CPI (Consumer Price Index) out of the EU and US, along with other data from the States will guide the market. We expect further dollar weakness.