Markets get off to a busy start

While dealers reported some liquidity shortages due to a week-long market holiday in Japan and the festive lull, there was no shortage of action ahead of the unofficial market opening today (January 6).

The euro nudged $1.05 on New Year’s Eve (December 31), amid growing concerns of an impending US military attack on Iraq and increasing tensions between the US and North Korea over the communist state’s alleged nuclear programme.

Dealers also reported unwinding of short positions that had built