Forex Trade Talk 11:00 GMT 26 January 2012

The Fed surprised the markets on Wednesday when it signaled a continuation of it very easy monetary policy until late 2014. This decision left some wondering what the central bank is seeing that the rest of us are not. The EURUSD and equity prices are higher.
European data this week have been mixed to stable. 
There is a Greek press report indicating that private lenders have accepted a sub-4.0% coupon on a PSI deal  We are waiting for official 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. 
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).
COMMODITIES and Commodity Currencies

Click on Chart to Enlarge
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.
John M. Bland is an author and co-founder and partner of Global-View.com. Prior to Global-View.com, he was a forex trader and a private-label forex analyst for a top Fed watching service in NYC. He has been a corporate forex advisor and also worked in international liability management for a major N.Y. money center bank. John holds an MBA from the University of California at Berkeley and a B.A. in International Economics from that school.
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