NEWS 09 JANUARY 2007

09 Jan 07: 11:37(LDN) - FX NOW! EUR/ISK, USD/ISK Flows - ISK holding gains for year against everything but USD....

ISK has started the first full week of 2007 holding on to gains from the first day of trading vs EUR and giving back the New Year's rally vs USD. The move vs USD is no surprise, though technically ISK is below the levels seen at the start of the year, there is not much in it. Inflation and employment data, due on Fri 12 Jan, may be what the market needs to reinforce its current tendency to move in between the USD and the rest of the list of currencies. An aside that will be worth a look will be the release later today of security holding by Iceland's National Debt Management Agency. Until then, USD activity is dominating the market and due to the light calendar, there is little hope for activity to pick up until Wed.