Major Headlines and Forex Recommendations

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 21^st 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