USD Mixed, EU May not Bailout Greece

FX Highlights

• The USD is trading mixed gaining versus the JPY and Europe and weakening versus the commodity currencies, the Euro was pressured by a statement from the ECB's Stark that the EU may not bail Greece out of its deficit problems and GBP pressured by report of unexpected decline in UK consumer confidence, EU downside was limited by report of improving services PMI and an uptick in PPI, UK data mixed with consumer confidence declining and retail shop prices rising at the fastest rate in 13 months, Australia's building approvals rose more than expected, JPY traded lower in reaction to report that Japan's finance minister resigned and by fresh concern about Japan's fiscal outlook, Deputy Prime Minister Kan will replace Fujii as Japan's finance minister, the trade will be closely watching Kans statements on JPY strength and Japans budget outlook, Fujii sparked a sharp JPY rally in September when he said a strong JPY is in the best interest of Japan
• Focus turns to today's release of US ADP employment, non-manufacturing ISM and the FOMC minutes and Canada's Ivey PMI
• Australia's November building approvals rose by 5.9%, the December PSI dipped to 50 from 52.5 in November and December vehicle sales rose 3.2%, AUD higher
• UK December nationwide consumer confidence index falls to 69 from 74 November, BRC shop price index rose 2.2% in December, December services PMI rose to 56.8 from 56.6 last month, GBP lower
• EU October industrial orders declined by 2.2%, November PPI rose by 0.1%, December services PMI improved to 53.6 from 53 last month, ECB's Noyer sees no deflation risk for the EU, EUR lower
• S & P may cut Iceland's debt rating by two notches
• US strip mall vacancies reach highest level in 18 years
• Challenger reports that December job cuts fell 73% from year ago and are down 10% since November
• US equity markets set to open lower, European equities 0.25 % lower, Nikkei closed 50 points higher

Upcoming Events

• US - Wednesday, ADP employment for December will be released expected at -73k compared to -169k last month along with December non-manufacturing ISM index expected at 50.5 compared to 48.7 last month and the FOMC minutes for the December meeting
• CAN - Wednesday, Ivey PMI for December will be released expected at 52 compared to 55.9 last month

Easy Forex

Michael J. Malpede is Chief Market Analyst with Easy-Forex® and has previously been featured on Bloomberg TV, Bloomberg radio, Reuters, MarketWatch, Wall Street Journal, Chicago Tribune, Chicago Sun Times, Toronto Star and Nikkei press. In analyzing the markets, he draws from 29 years of Foreign Exchange Research as a Foreign Exchange Analyst.

Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy- Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.