The forex markets are generally in range with dollar giving up some of last week's gain in spite of weakness in Asian stocks and commodities. Nikkei dropped over 200 points earlier today but pared some losses as the day goes. Crude oil also dipped to as low as 77.07 initially but recovered. Gold is trading steadily between 1130/40 level. Sterling is so far the stronger currency today, lifted so solid house price report. According to Rightmove's January survey, sellers raised UK house asking prices by 0.4% mom, 4.1% yoy. Rightmove said the data showed a buoyant start to the year with housing search activity at a record high. But higher interest rates and government spending cutbacks later in the year could sap the market's upward momentum.

Euro remains generally weak today, in particular in crosses. EUR/GBP dipped further to as low as 0.8812 before recovering mildly. EUR/AUD is soft in tight range above last week's low of 1.5522. EUR/CAD is still pressing 1.4716 support and we'd expect the cross to break through this support level in near term to 61.8% projection of 1.7499 to 1.5183 from 1.6006 at 1.4575 next. The whole fall from 1.7499 will possibly develop into a three wave move which eventually targets 100% projection at 1.3690.

EURUSD

The economic calendar is rather light today , UK rightmove house price index rose 0.4% mom in January. Japan industrial production was revised down to 2.2% mom in November. Canadian international securities transactions are expected to drop to CAD 5.0B in November. US market will be on holiday for Martin Luther King Day today.