Here are some market updates I read on various forex sites and blogs.
Market Movements
2-Year interest rate swaps showing the largest one-day drop (15 bps.) in two months... a sign of risk-willingness.
Our Global Top100 CDS Price Index is edging lower. Now at 123 bps., but still very elevated.
The White House is still undecided wrt. offering a bail-out to the big3 auto makers. Combined, they will close 59 factories over the next month, putting a maximum pressure on Obama, when he takes office.
In order to discourage inflow of deposits and get the banking system to start lending again, the ECB yesterday announced that they will cut the rate on deposits to 1.5% by the 21st of January. This move is halting the EUR’s advance.
Forex Recommendations
EURUSD topped out at 1.4719. EURGBP at 0.9557. EURCHF at 1.5370, under pressure.
EURUSD Rejected at 200-day MA (1.4700+) 1.4310 then 1.4385 resistance now. 1.4000 test next?
EURJPY 128.00 resistance. Looking for 125.00 if equities weak…
USDJPY 90 is key resistance now. May be set for test of low again if equities weak.
GBPUSD Looking weak again if it stays below 1.5200. 1.4885 structural support.
USDCAD Bullish above 1.2000. Break back above 1.2160 next key for more upside
