FX Weekly: 9th January 2012

• Oil and Gold again the volatility leaders

• Market tension continues strongly into 2012 as European debt, US fiscal health, Chinese growth and geo-political tensions in the Middle-East lead the market themes

• The EUR directed focus last week but it was the high-beta currencies that were the weakest performers overnight after Sunday’s market open

• Over the past six weeks USD is higher against the Euro and down against JPY, but it has fallen against the higher yielding commodity currencies

• This week’s macro calendar centres more on Europe and China than the US