The dollar's rally was in no way a vote of confidence on the US economy, which continues to crater as unemployment increases and consumer demand falls off the cliff, but rather simply a referendum on what's less horrible in the currency market at the present time.

The January Effect is a reliable indicators that is routinely overlooked.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for January 12.

The US dollar ended the week mixed across the majors, as the currency tumbled against the British pound, which was strong across the board, but also slipped versus some of the commodity dollars on a brief pick up in risk appetite.

In the forthcoming week, the euro may once again find a dominant, fundamental trend from its mature and wide range against the benchmark US dollar.

An empty week of economic data left the Japanese yen to trade purely off of shifts in risk sentiment, and a downturn in risky asset classes pushed the currency higher against the US dollar and other major counterparts.

Despite dour economic data, the British Pound has room to rise in the near term.  Considering the calendar is not set to offer anything blatantly worse than what has already been priced into the exchange rate, a moderation in rate cut expectations gives sterling some room for a corrective upswing.

A generation's worth of errors can be corrected in 6 months.

Despite the better than expected number, if you need proof that the US economy is in bad shape, the latest non-farm payrolls report certainly provides it.