Philly Fed beats expectations

A rare ray of hope from the Philly Fed survey. Dealers expected the index to stay around the -37 from December, but the index impoved to -24 in January. There is a pretty good correlation between Philly Fed and ISM, so perhaps that index will bounce too next month.

Volatility remains extremely high with EUR/USD sliding to 1.3055 before rebounding to 1.3090. There is talk of barrier options at 1.3050 and especially 1.3000.