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In what could be perceived as a massive boost to bullish market participants, yesterday’s U.S trade balance data showed an improving economy, offering investors reassurance that the Federal Reserve’s decision to taper its asset buying was justified by fundamentals. Minutes of the Fed’s December meeting are due later on today and markets will be hoping for a clear commitment to keeping rates low for a long time to come. 

The dollar climbed against the yen after the U.S. trade deficit shrank to its lowest in four years, thanks mainly to a renaissance in energy production, prompting analysts to revise up forecasts for economic growth. Investors are now expecting the International Monetary Fund to raise its global growth forecast in about 3 weeks. 

An ADP national employment report released today at 13:15 is expected to show that private payrolls in the U.S rose by 200,000 workers last month, acting as further encouragement for U.S investors and will be seen as an early indicator for Fridays Non-Farm data.

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