> Forex Trade Talk 10:00 GMT 17 May 2012

Trade Talk: What's Moving Markets continuous on Forex Forum Key Items: US- Weekly Jobs, Philly Fed, LEI, Natural Gas. Markets remain on headline watch. Greece now has an interim caretaker government. The new round of national elections will take place on June 17. Worries remain about the risk of capital flight from Greek banks, and elsewhere in the EZ.  The onus remains on the ECB and Germany to keep the EZ banking system funded, like it or not. A contagion effect is the risk. There are reports that JPM  trading losses on its hedge continue to mount. The pose no risk to the institution. The 10-yr bund is 1.46%, -1 bp. The key EURUSD 20-day average is 1.3071. Key European bourses are trading mixed. The U.S. 10-yr is 1.76%, 0 bp. Key Asian bourses closed mixed. The 10-yr JGB was 0.85%, +2bp. The USDJPY is steady. The key USDJPY 20-day average is 80.41. EURJPY is steady. Its 20-day average is 105.11.  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

Forex			#REF!			GBP vs.	20:05
EUR	1.2709	-23	JPY	102.05	-11	JPY	127.76	-62
GBP	1.5910	-89	GBP	79.88	30	CHF	150.33	-57
CHF	0.9449	17	CHF	1.2009	0	CHF vs.
JPY	80.30	6				JPY	84.98	-9

ome traders focus intently on the Japan vs. U.S. 2-yr note spread (only the U.S. 2-yr moves much).

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                                       COMMODITIES and Commodity Currencies

Click on Chart to Enlarge

  

Commodity							20:05
CAD	1.0125	64	AUD	0.9906	-27	Gold	1539	-3.74
CNY	6.3224	37	NZD	0.0000	0	WTI	92.77	-0.34

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.