Talking Points • Japanese Yen: Down Across the Board
• Pound: Trade Deficit Widens as Imports Jump
• Euro: President Trichet Heads to EU Summit Ahead of
Schedule • US Dollar: Wholesale Inventories, IBD/TIPP
Economic Optimism on Tap British Pound Gives
Top Stories Euro rallies on hopes for EU summit on Thursday Asian equities
slightly lower but Europe up on summit hopes Oil at $72.40/bbl Gold holds
steady at $1068/oz. Overnight Eco JPY Prelim Machine Tool Orders up 192% EUR
German Final CPI -0.6% as expected EUR
FOREX: CREDIT DEFAULT SPREADS AND EUR/USD EUR/USD: G7 LEAVES MUCH TO BE DESIRED
GBP/USD: LEADS G7 PUSH FOR BANKING FEE USD/CAD: NEW BUBBLE IN HOUSING ?
NZD/USD: BOLLARD FINDS THAT ECONOMY IS STILL FRAGILE AUD/USD: CUTTING BACK ON
Talking Points • Japanese Yen: Weighed by Risk Appetite
• Pound: Extends Decline From Previous Week
• Euro: Investor Sentiment Unexpectedly Weakens
• US Dollar: Lack of Fundamental Releases to Give Way to Risk
Trends Euro Rebounds Despite Drop in Sentix
Top Stories Jaoanese data shows slow improvement Asia lower as week starts OIl
at $71.50/bbl Gold bounces over $1066/oz. Overnight Eco JPY Bank Lending -1.5%
vs. -1.0% JPY Current Account 1.10T vs. 1.27T JPY M2 Money Stock 2.9% vs. 3.0%
CHF Unemployment Rate
U.S. DOLLAR: HAVE WE HIT A CAPITULATION POINT ? EUR/USD: STRONGER ECONOMIC DATA
BRINGS REPRIEVE GBP/USD: WILL HOTTER INFALTION BE SUSTAINABLE ? USD/CAD:
SURPRISING INCREASE IN EMPLOYMENT AUD/USD: OIL PRICES
Talking Points • Japanese Yen: Losing Ground Following
Yesterday’s Sharp Rally • Pound: U.K. PPI Tops Forecast
• Euro: German Industrial Outputs Tumble Lower in December
• US Dollar: Non-Farm Payrolls, Consumer Credit on Tap U.S.
Dollar Extends
Top Stories UK PPI much hotter at 2.0% Asia and Europe sharply lower in wake
triple digit losses in Dow (Dow breaks 10,000 in overnight trade) Oil below
$73/bbl Gold near weeks lows at $1050/oz Overnight Eco AUD AIG Construction
Index 57.7 vs. 49.3 JPY
FOREX MARKET HIT BY CRISIS OF CONFIDENCE EUR/USD: HITS 8 MONTH LOWS GBP/USD:
RISK IS TO THE UPSIDE FOR BOE USD/CAD: EMPLOYMENT NUMBERS COULD DISAPPOINT
AUD/USD: CONSUMERS CUT BACK HOLIDAY SHOPPING NZD/USD: SHARP DECLINE
on the horizon continued consolidation is somewhat expected, which is a good
thing in terms of the short-term geometric patterns we look to identify.
Initial near-term resistance comes in around 89.60 (38.2% of collapse) followed
by 90.25 (61.8%) and 90.70 (78.6%). Ideally, we want to look for
Talking Points • Japanese Yen: Down Across the Board
• Pound: Trade Deficit Widens as Imports Jump
• Euro: President Trichet Heads to EU Summit Ahead of
Schedule • US Dollar: Wholesale Inventories, IBD/TIPP
Economic Optimism on Tap British Pound Gives
