Despite a US holiday and thin conditions the USD rallied after the start of the mostly-closed New York markets opened today; traders note that technical factors likely drove trade as the USD rose to new highs against the Swiss Franc.

Rising to a new two-year high  for a high print at 1.1880 conditions were dismal as traders were forced to cover back open shorts expected to be set into Wednesday. News was light as the Greenback continued to rally all day making significant highs against all pairs but still holding existing monthly ranges for the most part.

Short squeeze likely over if the rate can trade 1.3000 handle this week. Expect a rotation lower as the rate continues to consolidate in two-way action. Traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap on first try.

Russians buying EURO around the 1.2860 area last week traders say; offers from same likely were seen in GBP this morning. Bids on dips from profit-taking shorts some desks report. Rate possibly getting spillover effect from GBP and vice-versa suggesting both pairs may track each other near-term. Support also from cross-spreaders as they unwind Yen.

The USD opens New York mixed after a quiet two-way overnight session aided by non-USD cross spreading; minor economic news helped to underpin the majors as the week gets underway. Overnight China announced a large economic stimulus plan and "appropriate measures" to be taken in order to continue China's record expansion; traders note that most of the Asian currencies were slightly weaker against the Yen and USD on the news. Equities rallied in Asia as well taking their cue from the news despite ongoing concerns of global recession; Wall Street is expected to open firmer today as well likely due to spillover effects from European bourses which are mostly higher as well.

Yen crosses were the focus overnight as the world equity markets gave back Wednesday's gains; traders continue to buy Yen against all major pairs putting a bit of upside pressure on the USD. However, the big news today is the surprise 1.5 BP cut in interest rates by the BOE. In the statement the BOE said that inflation pressures were dropping and that the need for stimulus was apparent.