Forex Trade Talk 00:00 GMT 20 January 2012

Forex Trade Talk Updates continuously added to Forex Forum Key Items AU- PPI,. GB- Retail Sales, US- Existing Homes CA- CPI. 
The session saw further corrections in the EUR as macro funds reportedly were reducing their EUR shorts. Recent COT and anecdotal data have been supporting the view reflecting the view that market participants are very short the common currency.
End of fiscal year Japanese life insurance investment adjustment activity reportedly also played a role.  
Spanish and French auction results Tuesday were generally positive. 
Greek sovereign debt negotiations are a major issue. The current proposal for holders of Greek debt is for for 15 cents on the dollar in cash and 35 cents in a new 30yr bond. Not all debt holders are happy with this proposal, but there are reports of progress.
The week ahead sees Lunar New Year observances. Chinese markets are closed all week.
Saturday sees the South Carolina presidential primary. A clear Romney victory would about ensure the Republican nomination. A loss would drag the process on further. 
Check the Forex Forum over the day for an updated and ongoing discussion of current trading themes in the MARKET CHATTER continuous discussion thread.
Forex pairs vs 2-yr note spreads
Some traders focus intently on the Japan vs. U.S. 2-yr note spread (only the U.S. 2-yr moves much).
COMMODITIES and Commodity Currencies

EQUITIES & INTEREST RATES
Bonds are a counter to risk trades because risk investments must be financed. When the cost of money moves up (higher interest rates), the return and allure of risk trades such as equities falls. 
See ECONOMIC CALENDAR for a complete list of future forex market events and consensus data estimates. Go to the forex forum for up-to-date market developments and technical trading ideas.