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Will the world economy be able to continue its recovery process as global monetary stimulus measures are phased out?
That’s a good question; and I doubt I can sufficiently answer it … except to say that it’s probably a lot easier said than done. But as far as how currencies…

The USD is trading higher as investors liquidate short USD positions and unwind USD carry trades before year-end, Chinese rate hike rumors limit USD upside, Moody’s downgrade of Greece’s debt sparked USD demand and selling of the EUR, German consumer confidence weakened in January, EUR downside limited by gains in…

Speaking in Tokyo today at the Securities Analysts Association of Japan, Gov Shirakawa made the following comments:

• Global financial instability would hurt Japan’s banks.
• Short-term prices shouldn’t set policy.
• Easy policy can fuel bubbles if they are prolonged.
• Ensuring financial stability is a goal for the BOJ.

Switzerland’s trade balance for November came in at 2.14B; lower than its prior release of 2.46B and forecast of 2.79B. Additionally, here are the rest of the details:

• Exports real SA (MoM) – Actual: 1.6%   Prior: 0.1%
• Imports real SA (MoM) – Actual: 0.6%   Prior: 0.6%

The third and final annualized U.S GDP estimate for the third quarter of this year is highly forecasted to show an unchanged growth expansion of 2.8%, indicating clearly that the recovery path is still taking place effectively and may even be accelerating as overall data posted from the world’s superpower…

The market was unaffected by the slightly worse than expected release of the German GfK Consumer Climate number which came in at 3.3 versus its forecast of 3.6 and prior reading of 3.7.  Currently, the EUR trades at 1.4296 against the USD.

Recently, the RSI indicator broke through the lower line of a sharp diagonal formation, which indicates that the wave (X) top is in place. The prices were also unable to break through the 76.4% Fibonacci resistance area and the upper line of a trading channel over the past weeks. A…

The currency market followed a pattern similar to the one seen in Monday trade. Despite the positive cash and futures equity markets, the major pairs have failed to move outside of their previous session ranges. The exception was the pound, after the U.K. GDP read disappointed investors once again. The…

Cable continued its downmove during the day and is now trading just above the Support at the 200-DMA (1.6007) mentioned earlier. A strong break below 1.6000 might pull it down towards 1.5930 in the US session today. As mentioned earlier a strong break below 1.6000 will render itself further bearish…

Cable tested the water below the USD1.600 level this morning. Sterling?s plunge followed the disappointing final UK GDP number though the economic outlook had been undermined by a gloomy economic outlook from the CBI and by yesterday?s news from S&P on UK banks. A host of comments from the BoE?s…