Rate drops to new lows in early New York today, aggressive liquidation by EURO-Sterling cross spreaders likely providing the main selling. Late longs are under pressure and can't ignore a break of the 50% fib defense numbers.

Bears took a stand at 1.4700 area last year and likely won't let go of shorts until technical levels are tested around 1.3660 area or lower which we have today. Technical traders will be looking for a test of the 100 day MA near-term to offer support this time after blowing through to the upside.

Rate is two-way and firmer due to cross-spreaders liquidating EURO-Sterling; repatriation also lending to the firm tone. Rate is likely to have a knee-jerk reaction to more rate cuts due later in the week but with a new 2008 low late in the month last month the probabilities are good that any rate cut is factored in.

Rate sees upside stops cleared around the 1.4550 area in light trade but no follow-through as of yet. Toolbox signals a trend sell as active from late in December likely running out of steam around the 1.4400 area so if holding shorts be nimble.

The USD is on the offense this morning for the most part as the first full day of post-holiday trading gets underway in New York. Overnight was a mixed bag for the Greenback as early weakness in index futures put a bit of downward pressure on the USD/JPY and mixed pressure on EURO and Cable; thin conditions were reported in Asia as a half-day holiday was seen in Japan. The volumes remained thinner into European trade but the main focus was the EURO-Sterling cross as the rate corrected from lifetime highs late last year; rumors that a large investment house would need Cable to meet funding needs as well as repatriation by oil companies supported the GBP into early New York scoring a 1.4581 high print in late European action.

A new service dubbed as Vodafone Friends Circle has been announced by major Indian mobile service provider Vodafone for its customers. The advantage of this service would be that a group of people would be able to call each other at cheap rates.

The service that works for a group of five people with Vodafone connections is available to both pre paid and post paid customers. The customers, who will take up the service, will be able to call each other at 20 paisa per minute.

It was informed by the company that the interested customers of Vodafone can activate this service through an SMS sent across as FRIENDS to a toll free number 144.

An anti-malaria drug is being developed by the DRDO from an herb found in the north-east, which may be used as a better alternative to usual drugs like Chloroquine.

It was confirmed by Dr. W. Selvamurtyhy, Chief controller of the DRDO (Defence Research and Development Organisation) on Sunday, "Six months back, we discovered the anti-malarial qualities in an herb Gommstema found exclusively in the northeast."

The seventh Pune International Film Festival (PIFF) will start from 8 January. Around 150 films from 42 countries will be screened during the festival. Minister of State for External Affairs and Information and Broadcasting Anand Sharma will inaugurate the eight-day festival. During inauguration, Veteran actors Shashi Kapoor, Hema Malini and Sulochana will be given with the Lifetime Achievement Awards.