Financial market review - foreign exchange The pound has recorded a split performance this week. It fell against the low yielding currencies (Japanese yen, US dollar, euro and Swiss franc) and rose against the commodity currencies (Canadian, Australian and New

Economic Recovery: Different Pace, Different Shape The leading economic index signals modest growth will continue into next year. Yet, the pace of that growth is consistent with a below-average recovery compared to the first year of prior recoveries as well

The fourth quarter has gotten off to a slow start for the economy. Industrial production for October fell by 0.1% from September while housing starts fell by 10.6% over the same period. Given the strong growth in the industrial sector

There have been very few newsworthy events in today's session, and even the handful of scheduled speakers lined up had very little effect on FX markets. The only driver therefore has been the performance of global equity markets; and with

USD: Higher, investors are reducing risk exposure & deleveraging as equity markets trade lower JPY: Higher, Japan's economy is back in deflation, BOJ upgrades its assessment of Japan's economy EUR: Lower, Trichet says too early to say if the crisis

The USD/JPY hovered below our 1st tier uptrend line earlier today as we witness a broad-based selloff in riskier investment vehicles. Investors have indicated a preference for the Yen over the Dollar when heading for safety, meaning the USD/JPY could

The Cable is undergoing an intense pullback today, dropping beneath all of our previous uptrend lines along with 11/12 lows. The Pound is getting hit by a report from Nationwide and an analyst poll from Bloomberg implying Britian's housing recovery

The EUR/USD briefly traded beneath 11/17 lows before stabilizing as we witness a broad based strengthening of the Dollar in reaction to a dip in the S&P futures below their psychological 1100 level. The wave of disconcerting data points from

Year-end risk reduction helps drive yields lower At 0.69% the 2-year US bond yield is only 5bp from the low point during the crisis reached a year ago. 3-Month t-bill rates are again trading around 0%. Mainly two factors are

Previous session overview The dollar held on to its gains against the euro and other higher-yielding currencies Friday morning as revived concerns about how fast the global economy will rebound prompted investors to shun riskier assets. Declines in stocks, gold

Highlights Bernanke: Fed's commitment to price stability supports strong dollar US interest rates set to remain exceptionally low until beginning of 2012? US data confirm doubts about strength of economic recovery Bundesbank signals gradual unwinding of unconventional measures Bernanke Sees

Overview A week with many subtle changes in a series of different markets and instruments. Most notable was the continuing trend to lower interest rates, new record low yields set on benchmark 2-year Swedish Treasuries (0.555%), US 2-year interest rate

European Trade: European shares moved lower in trade on Friday trade, following the Asian equity market that closed in the red. S&P futures moved side-ways throughout the overnight trading hours, but dropped eight points as the news that the ECB

Apart from giving the euro a slap in the face Jean Claude Trichet's remarks about wrapping up the cheap loans awarded to the European banking system a year ago tempered the recent rally in European interest rate futures this morning.

EURGBP: A third-day of upside strength currently seen continues to propel the pair higher following its break and hold above the 0.8896 level on Thursday. It was seen testing its daily 50 ema as at the time of this writing.

The main attention over the past few weeks has been on the US economy and dollar. There has been a tentative shift in sentiment over the past few days and there is a strong probability that the Euro-zone will be

Little news shaking the markets, as much of recent activity seems to be about position adjustments. MAJOR HEADLINES - PREVIOUS SESSION New Zealand Oct. Credit Card Spending fell -0.4% YoY vs. -2.3% in Sep. Japan BoJ left target rate unchanged

Daily Pivots: (S1) 0.9110; (P) 0.9206; (R1) 0.9280; More AUD/USD drops further to as low as 0.9060 in early US session and at this point, intraday bias remains on the downside as long as 0.9213 minor resistance holds. The break

Daily Pivots: (S1) 1.4857; (P) 1.4911; (R1) 1.4980; More EUR/USD falls further to as low as 1.4801 in early US session and the break of 1.4807 indicates that fall from 1.5047 is resuming. Intraday bias will remain on the downside

Daily Pivots: (S1) 1.6598; (P) 1.6673; (R1) 1.6741; More GBP/USD drops to as low as 1.6459 in early US session nd the break of 1.6516 support confirms that rise from 1.5706 has completed at 1.6875 already, with bearish divergence condition