USD weakness was the primary theme in the Asian session. The DXY is now making fresh lows, while the EURUSD peaked above thee 1.4900 handle. Sterling finally gained some ground on the greenback weakness, stopping just short of the 1.6000 level. Overall, risk correlated trades are showing a stellar performance and there seems to be little in the way of shifting risk appetite. Even a report that had Moody's stating that banks in Spain were failing to recognize the full extent of their losses could not dampen the optimistic outlook. In addition, the Moody’s report also stated that given the size of the bad debt, the Spanish banks would have insufficient capital to cover. And in another article it mentioned that 13 EU member states were in a high risk group, due to bad loans and couldn’t see how they could fund their debts through just state income. Perhaps the news that Intel’s corporate earnings had topped analysis expectations helped mute the Moody report. Equity market and commodities rallied on the positive numbers and USD sank.

  The BoJ Policy Board ended its two-day monetary meeting with a unanimous decision to leave rates unchanged at 0.1%, as was universally expected. The accompanying statement did not comment on the end-December deadline for commercial paper and corporate bond buying operations, as some had predicted. What was more relevant was comments from Japan 's deputy finance minister expressing views on the JPY, which were indistinguishable to those of Finance Minister Fujii. He stated that current JPY strength is due to USD weakness, and that large FX swings are unwelcomed, and that rises in the JPY is not an adequate reason for intervention. In other words, an official green light to buy JPY.

In the US session, markets will be watching Retail Sales and FOMC minutes, as well as corporate earnings from JP Morgan and Morgan Stanley. The FOMC minutes will be closely examined, as participants seek clarity on the Fed's current position on exit strategies.

G10 Advancers and Decliners vs USD
 NZD0.90width=120
 NOK0.89width=118.666666666667
 AUD0.84width=112
 JPY0.67width=89.3333333333333
 SEK0.62width=82.6666666666667
 GBP0.40width=53.3333333333333
 CHF0.36width=48
 EUR0.32width=42.6666666666667
 DKK0.29width=38.6666666666667
 CAD0.21width=28
Global Indexes Current Level % Change
Nikkei 225 Index10,060.21- 0.16
Hang Seng Index21,816.05+ 1.62
Shanghai Index2,970.53+ 1.16
FTSE 100 Index5,216.31+ 1.20
DAX Index5,789.29+ 1.31
SMI Index6,368.69+ 0.75
S&P future1,078.80+ 0.93
 World Markets Current Level % Change
Gold1.068.33+ 0.37
Silver18.04+ 1.43
VIX22.99- 0.08
Crude wti74.76+ 0.82
USD Index75.58- 0.52
 Todays Calender Estimates Previous Country / GMT
Claimant count unemployment, change K2524.4GBP / 08.30
ILO unemployment rate, %8.07.9GBP / 08.30
Average earnings growth, % 3m y/y1.41.7GBP / 08.30
Industrial production, % m/m (y/y wda)0.8-0.1,-16.0EUR / 09.00
Retail sales, % m/m (y/y)-2.0,-6.02.7,-5.3USD / 12.30
Retail sales ex autos, % m/m (y/y)0.2 (-5.5)1.1 (-6.2)USD / 12.30
Import prices, % m/m (y/y)0.2 (-11.62.0 (-15.0USD / 12.30
Nonpetroleum import prices, % m/m (y/y)--0.4 (-6.5)USD / 12.30
ECB Executive Board member Bini Smaghi gives openi----EUR / 13.15
Business inventories, % m/m (y/y)-0.8, -12.-1.1,-11.9USD / 14.00
Minutes of September FOMC meeting published----USD / 18.00
Fed Governor Tarullo testifies before the Senate B----USD / 18.30
RBA Governor Stevens speaks to the John Curtin Ins----AUD / 23.30
Currency Tech

AUDUSD 

R 2: 0.9345

R 1: 0.9205

CURRENT: 0.914

S 1: 0.8985

S 2: 0.8865

      USDCAD 

R 2: 1.0650

R 1: 1.0455

CURRENT: 1.0280

S 1: 1.0127

S 2: 1.0055

      EURJPY 

R 2: 134.21

R 1: 133.88

CURRENT: 132.88

S 1: 131.59

S 2: 130.69

      USDMXN 

R 2: 13.385

R 1: 13.330

CURRENT: 13.093

S 1: 12.980

S 2: 12.750