Forex Trade Talk 00:00 GMT 27 January 2012

Forex Trade Talk Updates continuously added to Forex Forum

Key Items JP- data, CH- KOF Index data. US- GDP, Michigan Survey.
Markets are still digesting the Fed Wednesday policy surprise when it signaled an extension of a very easy monetary policy until late 2014.Some wonder what the central bank see that the rest of us don't.
European data this week have been mixed to stable.
It might be that private lenders to Greece will accept a sub-4.0% coupon on a PSI deal We are still waiting for confirmation. A 4% coupon works out to about a 70% haircut for private holders, while 3.75% works out to 75% to 80% write-down.
Asian market are starting to reopen after the Lunar New Year celebrations. All will be back next week.
End of fiscal year Japanese life insurance investment adjustment activity coming into focus?
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).
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.