Your forexlive.com ENewsletter

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• Search for way through fiscal impasse turns to Senate
• Some thoughts from a rather large US bank
• Norway looks to spread wealth to U.S.
• EUR/USD poll
• Global currency tensions rise
• Those European stockmarkets that are open, look set to open pretty flat
• Swiss franc cap must move in 2-3 years, ex govt economist says
• We ignore the threat of inflation at our peril
• Lieberman says we’re likely to tumble over cliff
• ForexLive Asia Wrap Monday 24Dec2012: Japan Closed Today but the Yen still weakens
• Italy’s ‘Pigsty’ electoral law – ‘horror and shameful’
• US$1,000,000 First Prize Competition
• USD/JPY back on its day’s lows
• China pledges rural reforms to fix disparities
• Another Fiscal Cliff post …
• High-end bikes mark China’s wealth divide
• Pricing update
• Think you’re a Goldbug? These are the Real Goldbugs
• Christmas Tree (with a difference)
• US Equity Index Futures on Globex falling again

Search for way through fiscal impasse turns to Senate Posted: 24 Dec 2012 01:53 AM PST Time’s a wastin……

Some thoughts from a rather large US bank Posted: 24 Dec 2012 12:32 AM PST Dow Jones reporting. Regarding the US fiscal cliff, Citibank feels ‘Confirmation that a deal has been reached by Friday Dec 28. would probably bring about a 1% generalized USD selloff due to risk-on trading’ But failure to reach a deal would start to panic the market, the bank warning ‘We think it would lead to about a 2% USD rally on risk-off trading that day (28TH) and Monday Dec 31.’

Norway looks to spread wealth to U.S. Posted: 24 Dec 2012 12:20 AM PST ‘The Norwegians are coming to America’ says the WSJ If you’d like to read the full article, do a google search using the headline.

EUR/USD poll Posted: 23 Dec 2012 11:33 PM PST Where to next…. We’re at 1.3190. What’ll we see first, 1.3090 or 1.3290? Any reason/s for choice welcome, but not obligatory There ya go Hassan. You can be first to give your choice….

Global currency tensions rise Posted: 23 Dec 2012 11:17 PM PST ‘Japan’s Abe calls on central bank to resist easing moves by U.S. and Europe’ If you want to read the full article, do a google search using the headline.

Those European stockmarkets that are open, look set to open pretty flat Posted: 23 Dec 2012 10:46 PM PST Financial bookies see FTSE opening flat, CAC 40 up around +0.1%. UK, French, Dutch, Spanish stockmarkets only open half-day. Elsewhere, Germany, Italy, Austria, Greece, Denmark, Norway, Sweden and Switzerland will all be closed.

Swiss franc cap must move in 2-3 years, ex govt economist says Posted: 23 Dec 2012 10:27 PM PST So Jamie will eventually be right Bless his little cotton socks

We ignore the threat of inflation at our peril Posted: 23 Dec 2012 10:17 PM PST Andrew Sentance being……………………Andrew Sentance,

Lieberman says we’re likely to tumble over cliff Posted: 23 Dec 2012 10:08 PM PST On dear Say it ain’t so Joe……..

ForexLive Asia Wrap Monday 24Dec2012: Japan Closed Today but the Yen still weakens Posted: 23 Dec 2012 08:58 PM PST Quiet session ahead of the Christmas period with Japan closed for the Emperors Birthday Holiday. USD/JPY gapped a little higher in response to weekend reports of Abe still piling the pressure on the BOJ; if they don’t adopt a 2pct inflation target he’ll ‘revise’ the BOJ Act. He also mentioned 90 as a USD/JPY rate that would be beneficial to Japanese exporters. The Yen recovered some ground on speculative position squaring ahead of the break in the afternoon. ‘Risk’ had a soft day, in tight ranges. EUR, AUD, NZD, GBP all weakening in the morning, but all recovered ground in the afternoon on local players position squaring ahead of the holiday. The only data today was the December UK Hometrack House Price survey: M/M -0.1% (prior was -0.1%) There was no new news on the Fiscal Cliff front. Wishing a Happy and Safe Christmas to all! If Christmas is not your thing, have a Happy and Safe holiday time.

Italy’s ‘Pigsty’ electoral law – ‘horror and shameful’ Posted: 23 Dec 2012 08:29 PM PST The Italian election is still 2 months away (February 24 to 25, 2013) – but to get yourself up to speed on the Italian Electoral Law, this Reuters article describes it. Some, ummm, ‘highlights’: So bad it is universally known as the “pigsty”, Italy’s electoral law the man who introduced the law, the separatist Northern League’s Roberto Calderoli, called it “crap” soon afterwards. Giovanni Sartori, one of Italy’s most respected political scientists and the man who gave the law its nickname, told Reuters: “This electoral system is a horror and shameful.” Italy’s instability deepened by “pigsty” law

US$1,000,000 First Prize Competition Posted: 23 Dec 2012 08:03 PM PST Yep, you read that right, US$1,000,000 is the prize. (OK, so it’s not as good as an exclusive ForexLive T-shirt for simply guessing the NFP, but still … not too bad) The United States Department of Defense wants members of the public to …  help design a new amphibious infantry vehicle. And they'll pay you a million dollars to do it… teams will … put together and submit a design to the competition. The winning team will be awarded a $1,000,000 cash prize and have its design built in a DARPA manufacturing facility. Uncle Sam Wants You To Design His Next Fighting Vehicle

USD/JPY back on its day’s lows Posted: 23 Dec 2012 07:39 PM PST Not seeing any news – I would suggest its some USD/JPY longs squaring up before heading out the door for a few days off. There’s a bit of a gap down to about 84.25 to be aware of.

China pledges rural reforms to fix disparities Posted: 23 Dec 2012 07:04 PM PST This is a good news for rural Chinese, but I must say I found the report a little confusing. China will give farmers better protection over the land they till, raise their incomes and improve public services for them to help narrow the gap between urban and rural areas. The government will ensure farmers earn ‘reasonable returns’ from planting crops and increase agricultural subsidies, the official Xinhua news agency reported Thats all good. But this: The goals, which include increasing rural incomes by at least as much as those in urban areas, reflect the new Chinese leadership’s focus on reforming the land system, addressing wealth disparities and encouraging migration into towns and cities to boost consumption. Wouldn’t less wealth disparity discourage migration into towns and cities? China pledges rural reforms to fix disparities

Another Fiscal Cliff post … Posted: 23 Dec 2012 06:49 PM PST Article in the NY Times from Sunday (US time): With little more than a week for lawmakers to avert huge tax increases and spending cuts, attention is turning from the gridlocked House to the Senate, where some Republicans on Sunday endorsed President Obama's call for a partial deal to insulate most Americans from the tax increases but defer a resolution on spending. Dunno … I read through the article … it doesn’t seem to be saying much or saying that there is any path mapped out to get to a deal … maybe its just me or does this article not actually show that any progress has been made, or how it might be made? Sure, its nice that there seems to be some agreement between the two sides in the Senate … but thats not the point, is it? Its the House where the gridlock is, right?

High-end bikes mark China’s wealth divide Posted: 23 Dec 2012 06:39 PM PST Article in Australia’s Financial Review: Rich Chinese are buying bicycles that cost more than the average citizen makes in three years … It can cost up to $HK300,000 ($37,200) for an imported limited edition of expensive brands such as Italy’s Colnago or France’s Look, nearly 100 times the price of a Flying Pigeon, China’s official bike since it was born in 1950. Wow … I like my bike, but not that much. (Article may be Gated – try a news search on the headline: High-end bikes mark China's wealth divide)

Pricing update Posted: 23 Dec 2012 05:28 PM PST For those who may be out and about today, checking ForexLive on the mobile App, here’s some price updates: EUR/USD 1.3174 USD/JPY 84.45 GBP/USD 1.6149 AUD/USD 1.0390 NZD/USD 0.8219 (bit of a mover this morning in Asia, down from a high of 0.8253) USD/CAD 0.9944 March2013 ES contract on Globex 1419.25 (& the NQ at 2653.25)

Think you’re a Goldbug? These are the Real Goldbugs Posted: 23 Dec 2012 05:19 PM PST These little guys love gold so much they eat and excrete gold … Scientists in West Australia struck gold when they found high concentrations of the precious metal in termite hills. These gold-laden sediments are a good indication of deposits underground. Termites Strike Gold in Australia

Christmas Tree (with a difference) Posted: 23 Dec 2012 04:33 PM PST A 30-metre tall Christmas Tree on the border between South and North Korea. Doesn’t look like a Christmas Tree to me, but I like the idea: South Koreans light giant border Christmas tree A 30-meter-tall (100-foot-tall) steel Christmas tree with about 30,000 light bulbs, is lit by Christian groups at a mountain peak in Gimpo, South Korea, on Dec. 22. The Christmas tree would be visible by North Koreans living near the Demilitarized Zone that divided the two Koreas.

US Equity Index Futures on Globex falling again Posted: 23 Dec 2012 04:13 PM PST The March13 ES contract is down to around 1418 as I type.

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