The dollar and yen have strengthened against all major currencies

Yesterday, the dollar strengthened and U.S. equities fell on risk aversion and weak economic data.

Today, investors continue to be risk averse. The dollar and yen have strengthened against all major currencies. The euro has suffered as concerns about the euro-zone economy persist. One month into 2009, the euro has weakened 8 percent against the dollar as Europe's unemployment has risen, inflation has fallen, and future interest rate cuts are expected.

High-yielding currencies like the Australian dollar, New Zealand dollar, South African rand, and Mexican peso are all down significantly versus the dollar.

Key data out of the US today includes GDP, Personal Consumption, Chicago Purchasing Manager, U of Mich Confidence, and NAPM Milwaukee. Canada also releases GDP data today.