The market continues to reposition here ahead of the ECB rate decision this Thursday and London saw some good price action to that end. EUR/USD ground a touch higher and was up about 30 pips towards the 1.3430/40 zone. GBP/USD meanwhile corrected about -100 points and was sitting near 1.5000/10 just ahead of the NY session. The major yen crosses were lower with USD/JPY down -30 pips to just below the key 90 level while EUR/JPY shed -15 pips into the 120.60/70 area. Declines in global stock marts across the board helped to keep the yen crosses heavy here. USD/CAD rallied about 35 points towards 1.1970/80 with oil prices dipping back below $40/bbl, as demand destruction concerns continue to outweigh threats of OPEC production cuts and geopolitical tensions.

The NY session is now relatively light in terms of economic events. The only noteworthy thing looks to be a speech by Atlanta Fed President Lockhart who will discuss the US economic outlook. If recent Fed speeches are prescient, we expect a pretty dovish assessment from Mr. Lockhart. This is likely priced in and barring any major surprise we would not expect much market reaction here. As such, today will probably be a market driven more by technicals than anything else.

Upcoming Economic Data Releases (NY Session) previous forecast

* 1/12 13:30 GMT CA New Housing Price Index MoM NOV -0.40% - -

* 1/12 15:30 GMT CA Business Outlook Future Sales 4Q 3 - -

* 1/12 15:30 GMT CA BoC Senior Loan Officer Survey 4Q 49.8 - -

* 1/12 17:40 GMT US Fed's Lockhart Speaks on U.S. Economic Outlook in Atlanta 12-Jan

* 1/12 21:00 GMT NZ NZIER Business Opinion Survey 4Q -19 - -